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:

Consolidated Statements

Financial statements that present the financial position and results of operations for a parent company and its subsidiaries as one entity, after removing intercompany transactions.

Financial Statements

Reports that summarize the financial performance and position of a company, including balance sheet, income statement, and cash flow statement.

Financial Affairs

encompasses all activities related to the management of money and investments for an individual or organization.

Operating Influence

A term not commonly used in standard financial or business lexicon and might be confused or conflated with Operating Income, which refers to the profit realized from a business's core operations.