Which of the Following Statements Is CORRECT

question 23

Multiple Choice

Which of the following statements is CORRECT?

• A) The statement of cash flows reflects cash flows from operations, but it does not reflect the effects of buying or selling fixed
• Assets.
• B) The statement of cash flows shows where the firm's cash is located; indeed, it provides a listing of all banks and brokerage houses
• Where cash is on deposit.
• C) The statement of cash flows reflects cash flows from continuing operations, but it does not reflect the effects of changes in
• Working capital.
• D) The statement of cash flows reflects cash flows from operations and from borrowings, but it does not reflect cash obtained by selling
• New common stock.
• E) The statement of cash flows shows how much the firm's cash--the total of currency, bank deposits, and short-term liquid securities (or cash equivalents)--increased or decreased during a given year.

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Definitions:

Turnover

Occurs when employees quit or are fired and must be replaced by new employees.

Incentive System

A structured plan designed to motivate and encourage specific behaviors or actions among a group of people or employees.