The Statement of Cash Flows and the Statement of Financial

question 79

Multiple Choice

The statement of cash flows and the statement of financial position are interrelated because

• A)the ending amount of cash on the statement of cash flows must agree with the amount in the statement of changes in equity.
• B)the ending amount of cash on the statement of cash flows must agree with the amount in the statement of financial position.
• C)both disclose the corporation's profit.
• D)the ending amount of cash on the statement of cash flows must agree with the amount on the income statement.

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Definitions:

Fixture

An item that was originally a piece of personal property but becomes part of realty after it is permanently attached to the real property in question.

Subsurface Rights

Legal rights to use and develop the area below the earth's surface, such as minerals, oil, and gas.

Underground Materials

Substances found beneath the earth's surface which can include minerals, oil, gas, or groundwater.

Property

Assets or possessions owned by an individual or entity, including tangible items like real estate and personal items, or intangible rights.