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:

Unavoidably Dangerous

Products or activities that cannot be made completely safe, no matter the amount of caution used in their design or execution.

Punitive Damages

Damages in excess of actual losses suffered by the plaintiff awarded as a measure of punishment for the defendant’s wrongful acts. Also called exemplary damages.

Strict Liability

Legal responsibility for damages or injury, even if the person found strictly liable was not at fault or negligent.

Odometer

An instrument used to measure the distance traveled by a vehicle.