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When Preparing a Statement of Cash Flows,cash Equivalents Are Subtracted

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When preparing a statement of cash flows,cash equivalents are subtracted from cash in order to calculate the net change in cash during a period.

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Definitions:

Cost Data

Information regarding the expenses incurred in the production, operation, or undertaking of a project, activity, or product.

Monopolistically Competitive

An arrangement in the economy where countless firms are selling products that look similar but are unique, thus permitting them a slight advantage in the market.

Product Differentiation

The method of differentiating a product or service to appeal more to a specific target market.

Differentiation

The process of distinguishing a product or service from others to make it more attractive to a particular target market.

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