What is the purpose of the statement of cash flows? a. To provide information about a company's financial position b. To report the cash inflows and outflows from operating, investing, and financing activities c. To report the changes in a company's equity during a period d. To explain the differences between net income and cash flows from operating activities

What is the purpose of the statement of cash flows? a. To provide information about a company's financial position b. To report the cash inflows and outflows from operating, investing, and financing activities c. To report the changes in a company's equity during a period d. To explain the differences between net income and cash flows from operating activities

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 13MCQ

See similar textbooks

Similar questions

Which financial statement shows the financial performance of the company on a cash basis? A. balance sheet B. statement of owners equity C. statement of cash flows D. income statement
Which is the proper order of the sections of the statement of cash flows? A. financing, investing, operating B. operating, investing, financing C. investing, operating, financing D. operating, financing, investing
What insight does the calculation of free cash flow provide about the companys cash flow position?
Classification of Cash Flows A company's statement of cash flows and the accompanying schedule of investing and financing activities not affecting cash may contain the following major sections: a. Operating Activities b. Investing Activities c. Financing Activities d. Investing and Financing Activities not Affecting Cash The following is a list of items that might appear on a company's statement of cash flows or in the accompanying schedule. Required: Using the letters A through D, indicate in which section of the statement of cash flows (or the accompanying schedule) the preceding item would most likely be classified. After each letter, indicate with a plus (+) or a minus () whether the item would be reported on the statement (or the accompanying schedule).
Describe the relationship between changes in cash and changes in noncash assets, liabilities, and stockholders equity.
The following shows excerpts from Camole Companys statement of cash flows and other financial records. Compute the following for the company: A. free cash flow B. cash flows to sales ratio C. cash flows to assets ratio
In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. collected accounts receivable from customers B. issued common stock for cash C. declared and paid dividends D. paid accounts payable balance E. sold a long-term asset for the same amount as purchased
Which of the following financial statements should be prepared first? A. Balance Sheet B. Income Statement C. Retained Earnings Statement D. Statement of Cash Flows
Use the following excerpts from Nutmeg Companys financial records to determine net cash flows from operating activities and net cash flows from investing activities.
What is the Objective: Useful Information about Net Cash Inflows to the Company, and why is it important?
Which of the following statements is false? A. Noncash activities should be reported in accrual basis financial statements. B. Net cash flow from operating activities relates to normal business operations. C. Net income usually equals net cash flow from operating activities. D. The statement of cash flows is an essential part of the basic financial statements.
Explain the purpose of the statement of cash flows and why this statement is needed.