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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:

Annual Budget

A financial plan for a year that estimates income and expenditures for the said period.

Currency Exchange Rates

How much one currency is valued when converting to a different currency.

Estate Distribution

The process of dividing and allocating an individual's assets and properties after their death, according to their will or the laws of intestacy.

Sales Ratio

A metric used in business and finance to assess the efficiency of sales relative to various factors such as inventory levels, asset base, or overall market size.

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