Which of the Following Is NOT Correct Regarding the Reporting

question 139

Multiple Choice

Which of the following is NOT correct regarding the reporting of cash?

• A)Cash is reported in both the balance sheet and the statement of cash flows.
• B)Cash flows from buying and selling investments and long-term productive assets are called operating cash flows.
• C)Cash flows from transactions with stockholders and creditors are called financing cash flows.
• D)Net cash flows reported in the statement of cash flows should equal the change in cash reported in the balance sheet.

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Definitions:

Market Value

The present cost at which a product or service is available for purchase or sale in the marketplace.

Reacquired Stock

Stock that has been repurchased by the issuing company from shareholders.

Common Stock

Shares representing ownership in a corporation, giving holders voting rights and a claim on a portion of the company's profits through dividends.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often including fixed dividends.