Which of the Following Statements Is CORRECT

question 18

Multiple Choice

Which of the following statements is CORRECT?

• A) The statement of cash flows shows how much the firm's cash⎯the total of currency, bank deposits, and short-term liquid securities (or cash equivalents)⎯increased or decreased during a given year.
• B) The statement of cash flows reflects cash flows from operations, but it does not reflect the effects of buying or selling fixed assets.
• C) The statement of cash flows shows where the firm's cash is located; indeed, it provides a listing of all banks and brokerage houses where cash is on deposit.
• D) The statement of cash flows reflects cash flows from continuing operations, but it does not reflect the effects of changes in working capital.
• E) The statement of cash flows reflects cash flows from operations and from borrowings, but it does not reflect cash obtained by selling new common stock.

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Definitions:

Plasma Membrane

This is a protective double lipid layer encasing the cytoplasm of a cell, overseeing the transportation of substances across the cell boundary.

Membrane Potential

The electric potential difference across a cell's plasma membrane, crucial for the transmission of nerve impulses and muscle contraction.

Local Potential

A reversible, localized change in the electrical potential of a neuron's membrane, which can lead to an action potential if a certain threshold is reached.

Depolarization

A reduction in the difference in electric charge across a cell membrane, which is essential for generating action potentials in neurons and muscle cells.