Which of the Following Statements Concerning the Statement of Cash

question 138

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 a 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:

Conditional Reasoning

Conditional reasoning is a form of logical thinking that involves establishing a relationship between two propositions where one is a condition of the other.

Visual Memory

The ability to remember information encoded in visual form, which can be used to recall facts, details, or the physical location of objects.

Chunking

A process of reorganizing (or recoding) materials in working memory by combining a number of items into a single, larger unit.

Recognition

A type of retrieval that requires you to judge whether you have encountered a stimulus previously.