Which of the Following Is True About the Statement of Cash

question 6

Multiple Choice

Which of the following is true about the Statement of Cash Flows (SCF) ?

• A)The SCF is more subject to manipulation than the income statement.
• B)Cash flow from financing activities is considered to be the most important part of the SCF.
• C)Classification rules prevent manipulation of cash flows from operating activities on the SCF.
• D)Flexibility in applying classification rules on the SCF allows companies in the same industry to give vastly different perspectives.

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Definitions:

Pulsating

Describes a phenomenon where a physical quantity (such as current or voltage) varies in magnitude in a regular or irregular rhythm.

Linear

Pertaining to something that is directly proportional or follows a straight-line relationship in mathematics or physics.

Cosine

A trigonometric function that represents the ratio of the length of the adjacent side to the hypotenuse of a right-angled triangle.

RMS

Root Mean Square is a statistical tool used to determine the magnitude of a variable quantity, frequently applied in determining the effective value of alternating current.