Which of the Following Statements Concerning the Statement of Cash

question 209

Multiple Choice

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:

Functions

The roles or activities that an individual, group, or thing is expected to perform or fulfill.

Persuade

To convince someone to do or believe something through reasoning or argument.

Proposal

A document that offers a solution to a problem or a course of action in response to a need.

Audience

The group of people who watch, read, or listen to something, especially a show, movie, or speech.