When an Annual Statement of Cash Flows Is Prepared the Sum

question 31

Multiple Choice

When an annual statement of cash flows is prepared the sum of the three major components, operating activities, investing activities and financing activities, add up to:

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

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Definitions:

Federal Estate

The estate of a deceased person that is subject to Federal estate taxes, which are taxes imposed on the transfer of the decedent's assets.

Abatement

The reduction, decrease, or relief from severity, intensity, or intensity of something, often used in the context of tax, rent, or environmental hazards.

Ademption

The situation in wills and estates where a specific bequest cannot be distributed because the item no longer exists in the decedent's estate.

Legacies

Gifts or inheritances left to someone in a will.