Which of the Following Statements Is Correct

question 62

Multiple Choice

Which of the following statements is correct?

• A)The bottom line on the statement of cash flows equals the change in the retained earnings on the balance sheet.
• B)The reason the statement of cash flows is important is because cash is what pays the firm's obligations, not accounting profit.
• C)If a firm has accounting profit, its cash account will always increase.
• D)All of these statements are correct.

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Definitions:

Psychogenic Fugue

An uncommon mental disorder marked by temporary memory loss regarding one's own identity, encompassing recollections, character, and other features that define a person's individuality.

Organic Amnesia

Memory loss caused by physical damage or changes to the brain, which can result from injury, disease, or substance abuse.

Dissociative Identity Disorder

A psychological condition characterized by the presence of two or more distinct personality states that control an individual's behavior at different times.

Fugue State

A rare psychological state involving loss of personal identity and memory, often accompanied by unexpected travel or wandering.