{"id":48489,"date":"2024-04-15T22:42:00","date_gmt":"2024-04-15T22:42:00","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=48489"},"modified":"2024-04-15T22:42:00","modified_gmt":"2024-04-15T22:42:00","slug":"the-basic-purpose-of-funds-flow-statement-is-to-indicate-the","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-basic-purpose-of-funds-flow-statement-is-to-indicate-the\/","title":{"rendered":"The basic purpose of funds flow statement is to indicate the"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9801d04a030\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    funancial position                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"true\">\r\n                    increase or decrease in working assets                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    increase or decrease in liabilities                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    increase or decrease in working capital                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>B. increase or decrease in working assets<\/strong>.<\/p>\n<p>A funds flow statement is a financial statement that shows how a company&#8217;s cash and <div class=\"youtube-subscribe-container\">\r\n        <a 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xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> YouTube\r\n        <\/a>\r\n    <\/div> working capital have changed over a period of time. It does this by showing the sources and uses of cash during the period. The sources of cash can include things like sales, borrowing, and the sale of assets. The uses of cash can include things like purchases, investments, and the payment of dividends.<\/p>\n<p>The funds flow statement is important because it helps to explain how a company has generated cash and how it has used that cash. This information can be used to assess a company&#8217;s financial health and to make decisions about whether to invest in the company.<\/p>\n<p>Option A is incorrect because the funds flow statement does not show a company&#8217;s financial position. The financial position is shown on the balance sheet.<\/p>\n<p>Option C is incorrect because the funds flow statement does not show a company&#8217;s liabilities. The liabilities are shown on the balance sheet.<\/p>\n<p>Option D is incorrect because the funds flow statement does not show a company&#8217;s working capital. The working capital is calculated by subtracting the current liabilities from the current assets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The basic purpose of funds flow statement is to indicate the<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-basic-purpose-of-funds-flow-statement-is-to-indicate-the\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta 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