The Primary Purpose of the Statement of Cash Flows Is

question 58

True/False

The primary purpose of the statement of cash flows is to provide information about a company's cash receipts and cash payments during an accounting period.

---

Definitions:

Tax Rate

The rate at which a person or business is taxed on their earnings or profits.

Borrowed Funds

Money that is borrowed from banks or other lenders that must be repaid, often with interest, according to agreed upon terms.

CCA

Canadian Controlled Private Corporation, regarding taxation in Canada, or can refer to Capital Cost Allowance, which is a tax deduction in Canada that represents depreciation for tax purposes.

Net Advantage

The total benefit gained from a financial decision or investment, taking into account all relevant costs and revenues.