Which of the Following Statements Regarding the Inclusion of Liabilities

question 106

Multiple Choice

Which of the following statements regarding the inclusion of liabilities on the statement of cash flows is true?

• A)All current liabilities affect the Operating Activities section.
• B)Long-term liabilities generally affect the Investing Activities section.
• C)A decrease in a current liability from the beginning to the end of the year is accompanied by a decrease of cash.
• D)A decrease in a current liability from the beginning to the end of the year is accompanied by an inflow of cash.

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Definitions:

Degrees Of Freedom

The number of independent values or quantities which can vary in an analysis without breaking any constraints.

Proportion Of Successes

A statistical measure that calculates the ratio of successes in a set of observations to the total number of observations.

Z Test

Utilized to check for differences in the means of two populations, this statistical test requires that variances are known and that there is a considerable sample size.

Group 1

Typically refers to the first group or category in a study or classification system.