130

question 185

Multiple Choice

130. Which of the following statements concerning the statement of cash flows is true?

• A) The statement of cash flows is usually more accurate when using the indirect method.
• B) If the direct method is used, a supplementary schedule reconciling the net income to net cash from operating activities must still be provided.
• C) The statement of cash flows reflects both earnings per share and cash per share.
• D) The statement of cash flows is an optional financial statement for external reporting purposes.

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Definitions:

Outcomes-to-Inputs Ratio

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.

Expectancy

A person’s belief that working hard will result in high task performance.

Desired Level

The specific goal or standard of achievement that individuals or groups aim to reach.

Task Performance

The execution and completion of job-related activities, often measured against expected outcomes or standards.