Accounting Standards

question 148

Multiple Choice

Accounting standards:

• A) Require that companies omit the statement of cash flows from a complete set of financial statements if the company has no investing activities.
• B) Allow companies to omit the statement of cash flows from a complete set of financial statements if cash is an insignificant asset.
• C) Allow companies to include the statement of cash flows in a complete set of financial statements if the cash balance makes up more than 50% of the current assets.
• D) Require that companies include a statement of cash flows in a complete set of financial statements.
• E) Allow companies to omit the statement of cash flows from a complete set of financial statements if the company has no financing activities.

---

Definitions:

Solutions

Solutions are answers or ways to effectively deal with a problem or challenge.

Cognitive Bias

A structured manner of diverging from the norm or logical reasoning in making judgments, allowing for conclusions about others and situations to be made in a way that lacks logical coherence.

Paid

Receiving monetary compensation for services rendered or work performed.

Free Advice

Unpaid recommendations or guidance offered by individuals based on their knowledge, expertise, or personal experience.