Which of the Following Statements Concerning the Cash Flow Statement

question 67

Multiple Choice

Which of the following statements concerning the cash flow statement is correct?

• A) It provides the connecting link between the income statement and the balance sheet.
• B) It summarises the cash flows into and out of an entity.
• C) An alternative name is the cash budget.
• D) It includes cash and non-cash items.

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Definitions:

Symbol

A mark or character used as a conventional representation of an object, function, or process.

Numerator

The top number in a fraction, indicating how many parts of a whole are being considered.

Two-tailed Test

A statistical test in which the critical area for rejection of the null hypothesis is on both sides of the distribution.

Variance

A statistical measurement of the spread between numbers in a data set, indicating how far each number in the set is from the mean.