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What Is the Purpose of the Statement of Cash Flows

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Essay

What is the purpose of the statement of cash flows? List the three major categories of cash flows and give an example of a cash transaction for each category.


Definitions:

Impoverishment

The condition of being poor or lacking the necessary means of subsistence and financial resources.

Adaptation

A series of beneficial adjustments to a particular environment.

Capacity

The ability or potential a system, person, or organization has to perform, produce, contain, or withstand something.

Prestige Economies

Economic systems where the accumulation and display of wealth is not for personal consumption but to gain status and power within a community.

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