Which One of the Following Items Is Not Necessary in Preparing

question 214

Multiple Choice

Which one of the following items is not necessary in preparing a statement of cash flows?

• A) Determine the change in cash
• B) Determine the cash provided by operations
• C) Determine cash from financing and investing activities
• D) Determine the cash in all bank accounts

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Definitions:

Illusory Promise

An agreement that appears to be a contract but lacks the necessary elements to bind the parties, often due to vague or unenforceable terms.

Statute of Limitations

Laws prescribing the time limits within which legal proceedings may be initiated.

Discharged in Bankruptcy

The legal status of having been released from the obligation to repay most or all debt, under bankruptcy proceedings.

Inducement

An incentive or motivation provided to encourage a certain action or behavior, often used in legal and business contexts.