The Financial Statement That Identifies Where a Company's Cash Came

question 135

Multiple Choice

The financial statement that identifies where a company's cash came from and where it went during the period is the:

• A) Statement of financial position.
• B) Statement of cash flows.
• C) Balance sheet.
• D) Income statement.
• E) Statement of changes in owner's equity.

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Definitions:

Equal Annual Amounts

A term generally used in loan repayments or amortization schedules where payments are made in consistent amounts over the term of the loan.

Compounded Annually

A method of calculating interest where the calculated interest is added to the principal at the end of each year, subsequently affecting the calculation for the following year.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Annuity Due

A type of annuity payment where payments are made at the beginning of each period, instead of at the end, which is common in standard annuities.