Which One of the Following Is False

question 39

Multiple Choice

Which one of the following is false?

• A) The statement of cash flows can be prepared using cash and cash equivalents rather than just cash, as its base.
• B) The statement of cash flows reports the sources and uses of cash during a specific period.
• C) The statement of cash flows shows the effects on net income of a company's operating, investing, and financing activities for an accounting period.
• D) The statement of cash flows explains the difference between net income, as shown on the income statement, and the net cash flows generated from operating activities.