The Need for a Statement of Cash Flows Arises From

question 7

Multiple Choice

The need for a statement of cash flows arises from:

• A) Cash accounting
• B) Accrual accounting.
• C) International accounting.
• D) None of these.

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Definitions:

Paid-In Capital

The total amount of capital that shareholders have directly contributed to a company in exchange for shares.

Stockholders' Claim

Represents the shareholders' ownership interest in a company's assets, usually after debts and liabilities have been settled.

Authorized Stock

The amount of stock that a corporation is authorized to sell as indicated in its charter.

Corporate Charter

A legal document issued by a governmental authority that establishes a corporation and outlines its rights and obligations.