The Statement of Cash Flows Reports Cash Flows from the Activities

question 24

Multiple Choice

The statement of cash flows reports cash flows from the activities of:

• A)Operating,purchasing,and investing.
• B)Borrowing,paying,and investing.
• C)Financing,investing,and operating.
• D)Using,investing,and financing.

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Definitions:

Hedge Ratio

A ratio used to measure the proportion of a position that is hedged, indicating the effectiveness of a hedge against fluctuations.

Fair Value Hedge

A hedge of the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment, or some component thereof, that is attributable to a particular risk and could affect profit or loss.

Forward Contract

A customized contract between two parties to buy or sell an asset at a specified future date for a price that is agreed upon today.

Trade Payable

An amount owed by a business to its suppliers shown as a liability on the company's balance sheet.