Because the Statement of Cash Flows Derives Its Information from the Balance

question 117

True/False

Because the statement of cash flows derives its information from the balance sheets of the firm, it can be referred to more formally as the statement of changes in net working capital.

---

Definitions:

Coefficients

Numbers or parameters in a mathematical equation that multiply variables, often used to describe the relationship between variables in statistical models.

Probability Distribution

A math function tasked with computing the odds of different potential outcomes during an experiment.

Multiple Regression Model

A statistical technique that uses several explanatory variables to predict the outcome of a response variable.

Degrees of Freedom

Degrees of freedom refer to the number of independent values or quantities which can be assigned to a statistical distribution or to a system without violating any constraint.