Which of the Following Statements Is False

question 105

Multiple Choice

Which of the following statements is false?

• A)A balance sheet reports a company's cash balance at a specific date.
• B)An income statement reports the amounts of revenue and expense on an accrual basis,not the amount of cash received from revenues or paid for expenses.
• C)A statement of retained earnings reports the amount of cash received from operating activities and the amount of cash paid for dividends.
• D)A statement of cash flows explains the changes in cash from operating,investing,and financing activities.

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Definitions:

Rate Of Return

How much an investment's value has grown or shrunk over an agreed-upon time, expressed as a percent of its original price.

Investor Indifferent

A state in which an investor has no preference between two or more investments because they are perceived as equivalent in value.

Rate Of Return

The increase or decrease in the value of an investment during a given time frame, represented as a percentage of the investment's original price.

Investor Indifferent

A situation in finance where an investor is neutral between two or more investment options as they yield the same expected return or utility.