Asked by Tajmia Muhammad on May 20, 2024
Verified
What does a funds-flow statement measure?
A) Exchange gains/losses arising from the income statement
B) Exchange gains/losses arising from monetary assets and liabilities
C) Exchange gains/losses arising from non-monetary assets and liabilities
D) Exchange gains/losses arising from financing instruments
Funds-Flow Statement
A financial statement that shows the inflows and outflows of funds from operations, financing, and investing activities, illuminating how a company's financial position changes over time.
Exchange Gains/Losses
The profit or loss resulting from foreign currency transactions due to changes in exchange rates.
- Analyze the distinctions in the management of exchange gains and losses under diverse techniques and the resultant impact.
Verified Answer
AR
Adrian RickettsMay 24, 2024
Final Answer :
B
Explanation :
A funds-flow statement measures the movement of cash and cash equivalents in and out of a company, including exchange gains and losses arising from monetary assets and liabilities. It shows the sources and uses of funds during a specific period and helps in analyzing the company's liquidity, solvency, and financial position.
Learning Objectives
- Analyze the distinctions in the management of exchange gains and losses under diverse techniques and the resultant impact.
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