The Statement of Cash Flows Is

question 44

Multiple Choice

The statement of cash flows is:

• A) Another name for the statement of financial position.
• B) A financial statement that presents information about changes in equity during a period.
• C) A financial statement that reports the cash inflows and cash outflows for an accounting period, and that classifies those cash flows as operating activities, investing activities, or financing activities.
• D) A financial statement that lists the types and amounts of assets, liabilities, and equity of a business on a specific date.
• E) A financial statement that lists the types and amounts of the revenues and expenses of a business for an accounting period.

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Definitions:

Benefits Accrue

The accumulation of advantages or positive results over time from an action or investment.

Purely Competitive

A market structure characterized by many participants offering identical products, where no single buyer or seller can influence the market price.

Economic Profits

The excess of total revenue over total costs, including both explicit and implicit costs, as calculated in economic theory.

Normal Profits

The minimum level of profit necessary for a company to remain competitive in the market, essentially covering opportunity costs but not generating excess profit.