Which Is a Correct Statement

question 26

Multiple Choice

Which is a correct statement?

• A)The direct method of presentation for the cash flow statement must be used under ASPE.
• B)The direct method of presentation for the cash flow statement must be used under IFRS.
• C)The statement of cash flows explains the change between opening and closing cash.
• D)The "cash" balance on the cash flow statement does not have to be equal to the "cash" balance amount on the balance sheet.

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Definitions:

Financial Statement

An authorized ledger recording the economic occurrences and financial wellbeing of a company, person, or any distinct entity.

Normal Balance

A reiteration with different wording: The typical side (debit or credit) an account is expected to have, based on standard accounting rules.

Account Category

A classification used in accounting to organize financial transactions, such as assets, liabilities, equity, revenue, and expenses.

Net Sales

The total revenue from sales transactions after deducting returns, allowances, and discounts.