What does a statement of cash flow describe?
A) Gross profit compared to operating expenses
B) Value of revenues compared to cost of revenues
C) Yearly receipts and cash payments
D) Cost of obtaining materials needed to produce products
E) Funds that flow into the business from the sale of the goods or services provided
Answer: C
Explanation: C) The statement of cash flows describes yearly cash receipts and cash payments. It provides the most detail about how the company generates and uses cash, and some investors and creditors consider it one of the most important statements of all.
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Which COSO component of internal control concerns the process of identifying, capturing, and exchanging information in a timely fashion to enable accomplishment of the organization's objectives?
a. Control activities. b. Information and communication. c. Monitoring. d. Control environment.