Which of the Following Is Not True Regarding the Statement

question 79

Multiple Choice

Which of the following is not true regarding the statement of cash flows?

• A) The indirect method derives cash flows indirectly by starting with sales revenue and "working backwards" to convert that amount to a cash basis.
• B) Noncash transactions sometimes are reported in conjunction with the statement.
• C) Either the direct or the indirect method can be used to calculate and report the net cash increase or decrease from operating activities.
• D) The statement of cash flows provides information about cash flows that the other statements either do not provide or provide only indirectly.

---

Definitions:

Tungsten

A chemical element known for having the highest melting point of all the non-alloyed metals, making it excellent for use in high-temperature applications.

Atomic Symbol

A one or two-letter notation representing a chemical element (e.g., O for oxygen, H for hydrogen).

Iron

Iron is a chemical element with the symbol Fe and atomic number 26; it is a metal in the first transition series and is by mass the most common element on Earth, forming much of Earth's outer and inner core.

Atomic Symbol

An abbreviation used to represent an element, based on its name in English or its Latin roots.