The purpose of the statement of cash flows.

Question

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Answer 1

Question

Chapter 12, Problem 1Q

To determine

The purpose of the statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments 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.

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Answer 2

Question

Chapter 12, Problem 1Q

To determine

The purpose of the statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments 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.

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Answer 3

Question

Chapter 12, Problem 1Q

To determine

The purpose of the statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments 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.

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Answer 4

Question

Chapter 12, Problem 1Q

To determine

The purpose of the statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments 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.

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Answer 5

Chapter 12, Problem 1Q

To determine

The purpose of the statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments 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.

Answer 6

Chapter 12, Problem 1Q

To determine

The purpose of the statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments 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.

Answer 7

Chapter 12, Problem 1Q

To determine

The purpose of the statement of cash flows.

Answer 8

Expert Solution & Answer

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments 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.