Which Statement Is False? Current GAAP

question 14

Multiple Choice

Which statement is false? Current GAAP

• A) requires that the cash flows from the issuance of stock be reported as a financing activity and not be included in net cash flow from operating activities.
• B) does not allow cash flow per share reporting in a company's financial statements.
• C) states that under the indirect method, a company must report its operating cash inflows separately from its operating cash outflows.
• D) requires that the cash inflows and cash outflows for related investing activities as well as related financing activities be shown separately and not netted against each other.

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Definitions:

AVERAGE

AVERAGE refers to the mathematical mean, which is the sum of a list of numbers divided by the count of numbers in the list.

COUNTIF

A function in spreadsheet programs that counts the number of cells that meet a specified condition within a range.

Surface Chart

A graphical representation of three-dimensional data, where colors and patterns represent values at intersections of data points on a grid.

Three-Dimensional Data

Information or data represented in a format that includes depth along with height and width, creating a perception of physical structure.