When Preparing the Note Attached to the Cash Flow Statement

question 20

Multiple Choice

When preparing the note attached to the cash flow statement reconciling operating profit with cash flow from operations, which statement is not true?

• A) An increase in current liabilities is deducted from profit.
• B) A decrease in current assets is added to profit.
• C) An increase in current assets is deducted from profit.
• D) All of the above are true.

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Definitions:

Population Average

The mean value of a set of characteristics or measurements for the entire population.

Population Standard Deviation

A measure of the dispersion or spread of a set of data points in a population, showing how much variation exists from the average.

Square Root

A mathematical function that produces the original number when multiplied by itself.

Null Hypothesis

A hypothesis that suggests there is no significant difference between specified populations, any observed difference being due to sampling or experimental error.