If Stockholders Wanted to Know How Money Flowed into and Out

question 177

Multiple Choice

If stockholders wanted to know how money flowed into and out of the company, what financial statement would they use?

• A) income statement
• B) statement of cash flows
• C) balance sheet
• D) none of these

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Definitions:

Promissory Estoppel

Promissory estoppel is a legal doctrine that can enforce a promise in the absence of a formal contract when a party has relied on that promise to their detriment.

Consideration

Something of value that is exchanged between parties in a contract, making the agreement legally binding.

Preexisting Contract

A legal agreement that was created and became effective before the current discussion or issue.

Additional Consideration

Extra benefits or compensation provided to one party in a contract to modify or amend the original terms.