Which of the Following Statements About the Statement of Cash

question 191

Multiple Choice

Which of the following statements about the statement of cash flows is not correct?

• A)GAAP requires every company to report a statement of cash flows.
• B)The statement of cash flows is contained in the notes to the financial statements.
• C)The statement of cash flows is needed because the income statement and balance sheet do not provide adequate information about the changes in cash.
• D)The statement of cash flows provides information about how each major type of business activity causes a company's cash to change.

---

Definitions:

Division of Labor

An economic concept that divides tasks in a production process, where specialization increases efficiency and productivity.

Master Status

Some characteristic of a person that overrides all other features of the person’s identity.

Having a Disability

refers to the condition of having physical, mental, or emotional impairments that substantially limit one or more major life activities.

Postindustrial Societies

Societies characterized by an economy where the service sector produces more wealth than the industrial sector, reflecting a shift away from manufacturing-based economies.