All of the Following Are Reasons That the Statement of Cash

question 43

Multiple Choice

All of the following are reasons that the statement of cash flows is useful to the analyst except:

• A)The statement of cash flows shows how cash is generated during an accounting period and how it has been used.
• B)A positive net income figure on the income statement is ultimately insignificant unless a company can translate its earnings into cash, and the only source in financial statements for learning about cash generation is the statement of cash flows.
• C)The statement of cash flows shows the adjustments made to net income in order to calculate cash flow from operations; those should be examined to determine why cash flow from operations is negative or positive.
• D)The statement of cash flows is the only financial statement that cannot be manipulated.

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Definitions:

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