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:

Remembered Event

An event from the past that is recalled from memory, which can be subject to biases and alterations over time.

Encoding

The process of converting information into a form that can be stored in memory.

Short-Term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period of time.

Echoic

Pertaining to auditory processing, specifically the memory system that retains auditory information.