Which of the Following Comments in Relation to the Statement

question 44

Multiple Choice

Which of the following comments in relation to the statement of cash flows 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:

Company Owned Store

A retail establishment directly controlled and operated by the corporation that owns the brand, as opposed to a franchise.

Manager

An individual responsible for controlling or administering all or part of a company or similar organization.

Sharing Contracts

Agreements that involve distribution of profits or losses among parties based on pre-determined criteria.

Franchising

A method of business expansion where a company (franchisor) allows individuals (franchisees) to operate a business using its trademarks and business model.