Which Statement Regarding the Statement of Cash Flows Is Correct

question 25

Multiple Choice

Which statement regarding the statement of cash flows is correct?

• A)The statement of cash flows reflects cash flows from operations, but it does not reflect the effects of buying or selling fixed assets.
• B)The statement of cash flows reflects cash flows from continuing operations, but it does not reflect the effects of changes in working capital.
• C)The statement of cash flows reflects cash flows from operations and from borrowings, but it does not reflect cash obtained by selling new common stock.
• D)The statement of cash flows shows how much the firm's cash-the total of currency, bank deposits, and short-term liquid securities (or cash equivalents)-increased or decreased during a given year.

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