Which of the Following Is Not a Current Reporting Requirement

question 181

Multiple Choice

Which of the following is not a current reporting requirement for a statement that reports changes in cash over a period of time?

• A)This statement must classify cash flows into three categories: operating,investing,and financing activities.
• B)Cash equivalents must be combined with cash in preparing this statement.
• C)Working capital may be used as a substitute for cash in preparing this statement.
• D)The title for this statement is "Statement of Cash Flows."

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Definitions:

Sales Mix

The ratio of various goods or services contributing to a company's overall sales.

Break-Even Point

The point at which total revenues equal total costs, and the business is neither making a profit nor incurring a loss.

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term.

Sales Ratio

A metric that compares a particular figure or cost to the total sales, providing insight into various financial aspects of a business.