True/False The purpose of the statement of cash flows is to provide information about total revenue and expenses.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 23, Problem 1TF

True/False

The purpose of the statement of cash flows is to provide information about total revenue and expenses.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The purpose of the statement of cash flows is to provide information about total revenues and expenses is false.

Explanation of Solution

Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Purpose of the statement of cash flows:

The primary purpose of the statement of cash flows is to provide information about the cash inflows and cash outflows of an organization.
To determine the ability of the business to pay dividend and settle debts.
Statement of cash flows distinguishes among the operating activities, investing activities and financing activities.
Cash flows from operating activity provide information which is helpful in estimating future profitability, liquidity, and long term solvency.

From the above explanation, it is clear that the primary purpose of the statement of cash flows is to provide information about the cash flows (cash inflows and cash outflows) of the business.

Hence, the given statement is wrong.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Subject:- General Account

During the year, Kiner Company made an entry to write off a $9,000 uncollectible account. Before this entry was made, the balance in accounts receivable was $315,000 and the balance in the allowance account was $27,000. The net realizable value of accounts receivable after the write-off entry was: A. $200,000. B. $184,000. C. $176,000. D. $288,000. answer

Provide answer

Answer 2

Textbook Question

Chapter 23, Problem 1TF

True/False

The purpose of the statement of cash flows is to provide information about total revenue and expenses.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The purpose of the statement of cash flows is to provide information about total revenues and expenses is false.

Explanation of Solution

Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Purpose of the statement of cash flows:

The primary purpose of the statement of cash flows is to provide information about the cash inflows and cash outflows of an organization.
To determine the ability of the business to pay dividend and settle debts.
Statement of cash flows distinguishes among the operating activities, investing activities and financing activities.
Cash flows from operating activity provide information which is helpful in estimating future profitability, liquidity, and long term solvency.

From the above explanation, it is clear that the primary purpose of the statement of cash flows is to provide information about the cash flows (cash inflows and cash outflows) of the business.

Hence, the given statement is wrong.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 23, Problem 1TF

True/False

The purpose of the statement of cash flows is to provide information about total revenue and expenses.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The purpose of the statement of cash flows is to provide information about total revenues and expenses is false.

Explanation of Solution

Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Purpose of the statement of cash flows:

The primary purpose of the statement of cash flows is to provide information about the cash inflows and cash outflows of an organization.
To determine the ability of the business to pay dividend and settle debts.
Statement of cash flows distinguishes among the operating activities, investing activities and financing activities.
Cash flows from operating activity provide information which is helpful in estimating future profitability, liquidity, and long term solvency.

From the above explanation, it is clear that the primary purpose of the statement of cash flows is to provide information about the cash flows (cash inflows and cash outflows) of the business.

Hence, the given statement is wrong.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 23, Problem 1TF

True/False

The purpose of the statement of cash flows is to provide information about total revenue and expenses.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The purpose of the statement of cash flows is to provide information about total revenues and expenses is false.

Explanation of Solution

Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Purpose of the statement of cash flows:

The primary purpose of the statement of cash flows is to provide information about the cash inflows and cash outflows of an organization.
To determine the ability of the business to pay dividend and settle debts.
Statement of cash flows distinguishes among the operating activities, investing activities and financing activities.
Cash flows from operating activity provide information which is helpful in estimating future profitability, liquidity, and long term solvency.

From the above explanation, it is clear that the primary purpose of the statement of cash flows is to provide information about the cash flows (cash inflows and cash outflows) of the business.

Hence, the given statement is wrong.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The purpose of the statement of cash flows is to provide information about total revenues and expenses is false.

Explanation of Solution

Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Purpose of the statement of cash flows:

The primary purpose of the statement of cash flows is to provide information about the cash inflows and cash outflows of an organization.
To determine the ability of the business to pay dividend and settle debts.
Statement of cash flows distinguishes among the operating activities, investing activities and financing activities.
Cash flows from operating activity provide information which is helpful in estimating future profitability, liquidity, and long term solvency.

From the above explanation, it is clear that the primary purpose of the statement of cash flows is to provide information about the cash flows (cash inflows and cash outflows) of the business.

Hence, the given statement is wrong.

Answer 8

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The purpose of the statement of cash flows is to provide information about total revenues and expenses is false.

Explanation of Solution

Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Purpose of the statement of cash flows:

The primary purpose of the statement of cash flows is to provide information about the cash inflows and cash outflows of an organization.
To determine the ability of the business to pay dividend and settle debts.
Statement of cash flows distinguishes among the operating activities, investing activities and financing activities.
Cash flows from operating activity provide information which is helpful in estimating future profitability, liquidity, and long term solvency.

From the above explanation, it is clear that the primary purpose of the statement of cash flows is to provide information about the cash flows (cash inflows and cash outflows) of the business.

Hence, the given statement is wrong.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Identify whether the given statement is true or false.

Answer 12

Answer to Problem 1TF

The purpose of the statement of cash flows is to provide information about total revenues and expenses is false.

Answer 13

Explanation of Solution

Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Purpose of the statement of cash flows:

The primary purpose of the statement of cash flows is to provide information about the cash inflows and cash outflows of an organization.
To determine the ability of the business to pay dividend and settle debts.
Statement of cash flows distinguishes among the operating activities, investing activities and financing activities.
Cash flows from operating activity provide information which is helpful in estimating future profitability, liquidity, and long term solvency.

From the above explanation, it is clear that the primary purpose of the statement of cash flows is to provide information about the cash flows (cash inflows and cash outflows) of the business.

Hence, the given statement is wrong.

Answer 14

Ch. 23 - True/False The purpose of the statement of cash...Ch. 23 - Investing activities are those transactions...Ch. 23 - An increase in accounts receivable is deducted...Ch. 23 - Prob. 4TF Ch. 23 - Prob. 5TF Ch. 23 - Prob. 1MC Ch. 23 - Prob. 2MC Ch. 23 - Prob. 3MC Ch. 23 - Prob. 4MC Ch. 23 - Prob. 5MC

True/False The purpose of the statement of cash flows is to provide information about total revenue and expenses.

Concept explainers

Videos

Answer to Problem 1TF

Explanation of Solution

Want to see more full solutions like this?

Chapter 23 Solutions