Why Is the Statement of Cash Flows Required as Part

question 63

Essay

Why is the statement of cash flows required as part of the set of external financial statements?

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Definitions:

Pork-Barrel Politics

Refers to the allocation of public funds for projects designed primarily to benefit constituents of a politician in return for their political support.

Earmarks

Narrow, specially designated spending authorizations placed in broad legislation by senators and representatives for the purpose of providing benefits to firms and organizations within their constituencies. Earmarked projects are exempt from competitive bidding and normal evaluation procedures.

Public Subsidies

Financial support provided by the government to individuals, organizations, or industries to promote desired activities or reduce burden.