Which Statement Is False Regarding the Financial Statements

question 114

Multiple Choice

Which statement is false regarding the financial statements?

• A) The statement of cash flows reports the sources and uses of cash during the accounting period.
• B) Expenses on the income statement are reported as incurred, not as paid.
• C) Distributions to owners (dividends) are reported in the income statement.
• D) Current assets reported in the statement of financial position are generally reported in order of their liquidity.

---

Definitions:

Apparent Distance Hypothesis

A theory explaining that emotions can alter the perceived distance of an object, with negative emotions making objects seem further away.

Cultural Bias Hypothesis

The theory suggesting that cognitive tests and other assessments may be biased towards the values and experiences of a specific cultural group.

Visible Spectrum

The portion of the electromagnetic spectrum that is visible to the human eye, typically encompassing wavelengths from about 380 to 740 nanometers.

Wave

A disturbance that transfers energy from one place to another without transferring matter.