Which of the Following Statements Is Correct

question 62

Multiple Choice

Which of the following statements is correct?

• A)The bottom line on the statement of cash flows equals the change in the retained earnings on the balance sheet.
• B)The reason the statement of cash flows is important is because cash is what pays the firm's obligations, not accounting profit.
• C)If a firm has accounting profit, its cash account will always increase.
• D)All of these statements are correct.

Identify what is included in a post-closing trial balance.

Describe the role of an end-of-period spreadsheet in the accounting process.

Understand the preparation and significance of financial statements in the accounting cycle.

Differentiate between real and nominal accounts.

---

Definitions:

Eysencks' Basic Factors

A personality model proposed by Hans Eysenck, which categorizes human personality into three dimensions: extraversion, neuroticism, and psychoticism.

Emotionally Unstable

A state characterized by rapid and intense emotional shifts, which can impact an individual's thoughts, behaviors, and relationships.

Trait Theorists

Psychologists who study personality, focusing on identifying and measuring the stable characteristics that make up individual personalities.

Behavior Tendencies

Predominant patterns or inclinations in an individual's actions or conduct, often shaped by past experiences and biological factors.