Which of the Following Statements Is True About the Information

question 48

Multiple Choice

Which of the following statements is true about the information in a statement of cash flows?

• A)The statement of cash flows contains information about stock splits and stock dividends distributed by the company.
• B)The statement of cash flows contains information about the business's ability to generate positive cash flows in future periods.
• C)The statement of cash flows contains information about the business's percentage change in each item of revenue and expense.
• D)The statement of cash flows contains information about the differences between net income and additions to retained earnings.

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Definitions:

Generative Mode

A state of operation or condition where systems or processes are productive, creative, or able to generate new ideas, objects, or productions.

Strategic Management

The process of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives.

Forecasts

Predictions or estimates of future events or trends, based on current and historical data analysis.

Pure Guesses

Speculations made without any evidence or basis in facts.