What Is the Purpose of a Statement of Cash Flows

question 104

Essay

What is the purpose of a statement of cash flows? Give an example of one of each of the three activities.

---

Definitions:

Pay-Related

Refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship.

Pay Equity

The practice of compensating employees equally for jobs requiring comparable skills, responsibilities, and effort, regardless of gender or other irrelevant factors.

Compensation Policy

A set of guidelines that an organization follows to determine how employees will be compensated, including salaries, benefits, and bonuses.

Pay Inequities

Situations where there is an unfair or unequal distribution of pay among employees, often due to discrimination based on gender, race, or other factors.