Which of the Following Statements Is INCORRECT

question 19

Multiple Choice

Which of the following statements is INCORRECT?

• A) Information about the variability of profits helps in forecasting future cash flows from an entity's existing resources.
• B) Performance of an entity is determined solely through examination of the Statement of Profit or Loss and Other Comprehensive Income of an entity.
• C) An entity's Statement of Cash Flows provides insight into changes in assets and liability balances during an accounting period.
• D) The Statement of Financial Position presents information relating to economic resources, the financial structure of an entity, liquidity and solvency and capacity to adapt to changes in an entity's environment.

---

Definitions:

Partnership Form

A legitimate business structure where two or more partners collaborate in managing the firm and splitting the profits.

Equity Capital

The amount of money that is invested in a company by its owners, as opposed to borrowed funds or debt.

Tax-Deductible

A portion of expenses that can be subtracted from gross income to reduce taxable income.

Discriminatory

Refers to unfair treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.