Which of the Following Comments in Relation to the Statement

question 52

Multiple Choice

Which of the following comments in relation to the statement of cash flow is incorrect? The statement of cash flows:

• A) allows the user of the report to determine where cash has been generated.
• B) is essentially a formal statement of all transactions affecting the cash account.
• C) highlights where cash has been spent.
• D) is a duplication of information already provided in the other financial statements.

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Definitions:

Income

Refers to the income earned, either periodically or consistently, from employment or investment ventures.

Utility Function

A mathematical expression that ranks preferences over a set of goods or outcomes, representing satisfaction or happiness derived from consumption.

Consumption

The act of using goods and services to satisfy needs and wants, which is a fundamental component of economics.

Income

The money received by an individual or business for services provided, products sold, or investments.