Which of the Following Does a Discrepancy in Cash Flow

question 14

Multiple Choice

Which of the following does a discrepancy in cash flow reconciliation indicate?

• A) The cash outflow is greater than the cash inflow.
• B) The cash flow statement reflects entries for intercompany cash flows and transactions.
• C) Certain cash transactions are not accurately reflected in the income statement and balance sheet.
• D) There was an unexpected surge of cash flow during the period.

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Definitions:

Interval Data

A type of quantitative data that involves measurements where the difference between two values is meaningful, but there is no true zero point.

Bimodal Data

Data that has two different modes, or peaks, in its frequency distribution.

Empirical Rule

A statistical rule stating that for a normal distribution, nearly all of the data will fall within three standard deviations of the mean.

Measure Variability

The degree to which data points in a dataset differ from each other and from their average value.