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.

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Definitions:

Common Arrangement

A typical or widely accepted way of organizing or structuring something.

Following Divorce

pertains to the period and adaptations individuals and families undergo after the legal dissolution of a marriage.

Adolescence

A developmental stage between childhood and adulthood characterized by physical, psychological, and social changes, typically occurring during the teenage years.

Communicate

The act of conveying information or expressing thoughts and feelings through speech, writing, or another medium.