Which of the Following Statements Best Describes the Statement of Cash

question 19

Multiple Choice

Which of the following statements best describes the statement of cash flows?

• A) The statement of cash flows reflects cash flows from operations, but it does not reflect the effects of buying or selling fixed assets.
• B) The statement of cash flows reflects cash flows from continuing operations, but it does not reflect the effects of changes in working capital.
• C) 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.
• D) 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.

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Definitions:

Concrete Operational

A stage in cognitive development, according to Piaget, where children (around 7-11 years old) start thinking logically about concrete events but struggle with abstract concepts.

Transform Objects

The ability to change or manipulate objects in one's environment, often reflecting cognitive development and creative problem-solving skills.

Piaget

A Swiss psychologist known for his pioneering work in the study of child development, particularly his theory of cognitive development.

Abstract Ideas

Concepts that do not have a physical or tangible presence, and are often complex and thought-based.