Which of the Following Statements Is Not True

question 90

Multiple Choice

Which of the following statements is not true?

• A)The statement of cash flows does not replace the income statement.
• B)The statement of cash flows provides details as to how cash changed during a period.
• C)The statement of cash flows provides information about cash receipts and cash payments over a period of time.
• D)The statement of cash flows measures profitability.

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Definitions:

Obsolete Inventory

Inventory items that are no longer sellable due to their obsolescence, such as outdated technology or fashion items, leading to potential write-offs.

Early Debt Retirement

Early debt retirement is the repayment of debt before its scheduled maturity date, which can reduce interest expenses and leverage.

Risk Management

The process of identifying, assessing, and prioritizing risks followed by the application of resources to minimize or control the impact of such risks.

Traceable Costs

Traceable costs are specific expenses that can be directly linked to a particular cost object, such as a product, department, or project.