When an Annual Statement of Cash Flows Is Prepared the Sum

question 44

Multiple Choice

When an annual statement of cash flows is prepared the sum of the three major components add up to:

• A) profit for the period.
• B) the ending working capital.
• C) the ending cash at bank account balance.
• D) the change in the cash at bank account balance over the year.

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Definitions:

Listening

The active process of receiving, interpreting, and reacting to verbal and nonverbal messages from others.

Fact

Something that has been directly observed to be true and thus has been proven to be true.

Inference

Conclusion based on speculation.