Which Statement Is Not Correct

question 57

Multiple Choice

Which statement is not correct?

• A)Comparative cash flow statements explain the company's ongoing need for cash.
• B)Cash flow statement explains why the change in cash is the same as reported income.
• C)Standardized categories are required for the cash flow statement.
• D)The cash flow statement provides information not available in the balance sheet.

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Definitions:

Trade Discount

A reduction from the list price given by a seller to a buyer, often based on the volume of the transaction or to incentivize early payment.

Bank

A financial institution licensed to receive deposits and make loans, it may also provide financial services such as wealth management, currency exchange, and safe deposit boxes.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits or losses.

Balance Sheet

An overview document that itemizes a business’s resources, debts, and owner’s equity at a particular date, giving a concise view of its fiscal status.