Which of the Following Is Required in Creating a Cash

question 8

Multiple Choice

Which of the following is required in creating a cash flow statement?

• A)The values of all assets
• B)Value of all liabilities
• C)Amounts used for expenses
• D)The ideal emergency fund amount

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Definitions:

Dividend

A portion of a company's earnings that is distributed to shareholders, usually in the form of cash payments or additional shares.

Geometric Average

A method of calculating the average rate of return that accounts for compounding by taking the nth root (where n is the count of numbers) of the product of the values.

Arithmetic Average

A simple mean calculated by adding a set of numbers and dividing the sum by the count of those numbers, used to determine central tendencies.

Arithmetic Average Return

The return earned in an average year over a multi-year period.