The Primary Objective of the Statement of Cash Flows Is

question 58

Multiple Choice

The primary objective of the statement of cash flows is to provide information about a company's:

• A) Cash receipts and disbursements.
• B) Noncash financing and investing activities.
• C) Financial position.
• D) Profitability.

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Definitions:

Disposable Income

Income remaining after deduction of taxes and other mandatory charges, available to be spent or saved as one wishes.

Interest Rate

The cost of borrowing money, expressed as a percentage of the total amount loaned.

Net Wealth

The total value of all financial and non-financial assets owned by an individual or entity minus any liabilities.

Future Prices

The expected price of a commodity, security, or currency set in a futures contract for delivery and payment at a specified future date.