Which of the Following Statements Regarding Cash Flows Is Not

question 25

Multiple Choice

Which of the following statements regarding cash flows is not accurate?

• A) Before the present cash flow statement standard became effective, companies had a choice of whether to report cash flow from operating activities or working capital from operating activities.
• B) Studies have shown that a cash flows report is more relevant to investor decisions than a working capital report.
• C) The reported cash flow from operating activities has been found useful in evaluating a firm's ability to make interest payments and repay debt.
• D) Information about past cash flows is useful in predicting an entity's future cash flows.
• E) Information about the balances of current liabilities, long-term debt and stockholders' equity can be found in the statement of cash flows.

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Definitions:

Psychological Empowerment

The feeling of having control over one's work, a sense of meaning in work tasks, the ability to influence decisions, and confidence in one's abilities.

Leaders

Individuals who guide, direct, or influence others toward achieving goals or realizing a vision.

Independent Workers

Individuals who provide services or work on a project basis, often without a long-term commitment to any single employer or client.

Short-term Talent

Individuals or groups hired or utilized for their skills over a brief period, often to meet specific project or seasonal demands.