Which of the Following Statements Are Correct

question 60

Multiple Choice

Which of the following statements are correct?
I. A company's choice of accounting principles for financial reporting purposes does not affect net cash flow for the accounting period
II. A company's choice of accounting principles for financial reporting purposes does not affect operating cash flow
III. If a company sells its receivables this will increase operating cash flow
IV. If a company sells its receivables this will increase financing cash flow

• A) I and III
• B) I, II and III
• C) II and IV
• D) I and IV

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Definitions:

Grab Bag

A term often used to describe a varied collection of objects or ideas brought together randomly or for a specific purpose, akin to a miscellaneous category.

Escape Behaviors

Actions taken to terminate or avoid unpleasant stimuli or situations, often considered in the context of negative reinforcement.

Avoidance Behaviors

Actions taken to prevent or avoid a perceived unpleasant or harmful event or outcome.

Punishment

The imposition of a penalty or negative consequence following undesirable behavior, aimed at reducing or eliminating that behavior.