The Statement of Cash Flows

question 64

Multiple Choice

The Statement of Cash Flows:

• A)lists all cash flows over the life of a company.
• B)breaks down all cash transactions into Investing and Financing cash flows.
• C)shows that the change in total cash from one year to the next is equal to the net operating,investing,and financing cash flows.
• D)has two methods for Investing Cash Flows - direct and indirect.

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Definitions:

Price Inelastic

This refers to a situation where the quantity demanded or supplied of a good or service changes minimally in response to changes in its price.

Farm Products

Goods that are the result of agricultural activities, including crops, livestock, and the products derived from them.

Total Revenue Test

A method used to assess the impact of price changes on total revenue, analyzing if a product is elastic or inelastic in demand.

Elasticity

A measure of how much the demand or supply of a product changes in response to a change in price.