Regarding the Statement of Cash Flows, Which of the Following

question 126

Multiple Choice

Regarding the statement of cash flows, which of the following is true?

• A)The statement of cash flows reports why cash increased or decreased during the period.
• B)The statement of cash flows covers a span of time and is dated "Year Ended, Month, Day, and Year."
• C)The statement of cash flows shows where cash came from and how cash was spent.
• D)All of the above are true of the statement of cash flows.

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Definitions:

Acquisition Method

A set of procedures used in accounting to consolidate the financial statements of a parent company and its subsidiaries.

Consolidated Revenues

The total earnings generated by a company and its subsidiaries, reported together as a single figure.

Partial Equity Method

The partial equity method is an accounting approach used when an investing company has significant influence, but not full control, over an investee, recognizing income to the extent dividends are received.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its net identifiable assets.