Which of the Following Statements Is Correct

question 27

Multiple Choice

Which of the following statements is correct?

• A) The bottom line on the statement of cash flows equals the change in the retained earnings on the balance sheet.
• B) The reason the statement of cash flows is important is because cash is what pays the firm's obligations, not accounting profit.
• C) If a firm has accounting profit, its cash account will always increase.
• D) All of these choices are correct.

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Definitions:

Research Method

A systematic plan for conducting research, including techniques and procedures for collecting and analyzing data to gain new knowledge or understand a topic better.

Research Design

The framework or plan for a study that guides the collection and analysis of data to ensure valid and reliable results.

Scientific Investigation

A structured process for exploring phenomena and acquiring new knowledge through observation, experimentation, and analysis.

Plan

A plan is a detailed proposal or strategy for achieving specific goals or objectives, typically including steps, methods, and a timeframe, used in various contexts such as personal projects, business operations, and governance.