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Which primary purpose of a statement of cash flows

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Reference no: EM132696688

Problem 1. The primary purpose of a statement of cash flows is to provide relevant information about

a. Difference between net income and associated cash receipts and disbursement.

b. An entity's ability to generate positive net cash flows.

c. The cash receipts and cash disbursements of an entity during a period

d. An entity's ability to meet cash operating needs

Problem 2. Cash equivalents are;

a. Treasury bills and money market funds.

b. Investments with original maturities of three months or less.

c. Readily convertible to known amount of cash.

d. All of these are features of cash equivalents.

Reference no: EM132696688

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