Which of the Following Is an Accurate Statement Regarding a Statement

question 45

Multiple Choice

Which of the following is an accurate statement regarding a statement of cash flows?

• A)Only cash items that affect the income statement are included.
• B)Only material cash items that affect the income statement are included.
• C)All material operating, investing, and financing activities are included.
• D)Immaterial financing activities that affect cash do not need to be included.

---

Definitions:

Equity Multiplier

A measure of a company's financial leverage, calculated by dividing its total assets by total stockholders' equity.

Net Income

The net income of a company once all costs and taxes are subtracted from the total earnings.

Total Assets Turnover

A financial ratio that measures a company's efficiency in using its assets to generate revenue.

Sales

Revenue generated from the sale of goods or services.