Which of the Following Statements Is Correct

question 51

Multiple Choice

Which of the following statements is correct?

• A) The statement of cash flows should include changes in summary accounts,such as current assets and current liabilities,as well as changes in all individual accounts.
• B) If a firm sells equity to reduce long-term bonds,this is a capital financing transaction and does not appear on the statement of cash flows.However,if the firm sells equity in order to purchase assets,this transaction would be included in the statement of cash flows.
• C) Net income is normally the firm's primary operating cash flow,but changes in accounts payable,accounts receivable,inventories and accruals are also classified as operating cash flows.
• D) Each change on the balance sheet results from one of two types of transactions,either financing activities,such as issuing or retiring new stock or debt,or long-term investment,such as buying and selling assets.
• E) The change in the firm's liquidity position is measured by how much greater a firm's sources of funds are than its uses of funds.

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Definitions:

Temporal Lobes

Regions of the brain located on either side of the brain, involved in processing auditory information and encoding memory.

Seeing

The ability or act of perceiving objects with the eyes, involving the processing of visual information.

Hearing

The sensory process and ability that enables sound perception, involving the detection of sound vibrations and their translation into neural signals recognizable by the brain.

Reward Centers

are regions in the brain, such as the nucleus accumbens, involved in the sensation of pleasure and motivated behavior by reinforcing actions.