Which of the Following Statements Regarding Operating Cash Flows Is

question 260

Multiple Choice

Which of the following statements regarding operating cash flows is accurate?

• A) To evaluate changes in OCF you need to look at both the statement of financial position and statement of comprehensive income.
• B) Changes in OCF will occur when cost of goods sold changes, all else the same.
• C) Changes in OCF result directly from changes in financing
• D) OCF for a project can be found by subtracting depreciation from project net income.
• E) An increase in depreciation will cause a decrease in OCF, all else the same.

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Definitions:

Visual Recognition

The cognitive process by which the brain identifies and understands objects, faces, and symbols seen through the eyes.

Visual Images

Mental representations of objects, scenes, or events that are not currently present to the senses.

Spatial Relationships

The understanding of how objects or points in space relate to each other in terms of distance, direction, and position.

Mental Rotation

The cognitive ability to rotate mental representations of two-dimensional and three-dimensional objects.