Which Statement Is Not Correct

question 26

Multiple Choice

Which statement is not correct?

• A)The cash flow statement explains the ability to generate sufficient cash to meet obligations.
• B)The cash flow statement explains the timing of future cash flows.
• C)The cash flow statement explains the uncertainty of future cash flows.
• D)The cash flow statement explains the ability of a company to generate future dividends.

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Definitions:

Construct Accessibility

The ease with which a particular mental construct can be activated or brought to mind, often influenced by recent experiences or current mood.

Primacy Effect

The inclination to recall data presented at the start of a list more effectively than the subsequent information.

Recency Effect

Tendency to remember information at the end of a body of information better than the information that precedes it.

Group Think

The behavior seen in groups when the urge for peace or uniformity brings about decisions that are improper or not functional.