The Main Purpose of the Statement of Cash Flows Is

question 71

Multiple Choice

The main purpose of the Statement of Cash Flows is:

• A) to determine the change in cash for the period.
• B) to disclose information about cash receipts and disbursements during the period.
• C) to disclose the changes in long-term asset and liability accounts during the period.
• D) to disclose significant noncash investing and financing activities during the period.
• E) to explain why net income and net operating cash flows are different.

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Definitions:

Annual Bonus

A monetary reward given to employees once a year, based on performance or company profitability.

Paralegal

A professional who performs legal tasks under the supervision of a lawyer, contributing to case preparation and research.

Long-Term Career Goals

Objectives or aspirations a person aims to achieve in their professional life over an extended period.

Job Realities

Job realities refer to the actual conditions and characteristics of working life in a specific job or industry.