Which Statement Concerning the Interpretation of a Statement of Cash

question 19

Multiple Choice

Which statement concerning the interpretation of a statement of cash flows is incorrect?

• A) The notes to the statement of cash flows are important in interpreting the firm's cash position.
• B) Ways in which cash flows can be manipulated include delaying cash payments and employing finance leases.
• C) It is the indirect method rather than the direct method of preparation that is preferred by the standard setters.
• D) The statement of cash flows as required under IAS 7/AASB 107 only goes some of the way in enabling users to establish the liquidity/solvency position of an entity.

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Definitions:

Sartre

Jean-Paul Sartre, a French existentialist philosopher, playwright, novelist, political activist, and literary critic known for his work on existentialism and phenomenology.

Core Selves

The essential or most integral aspects of an individual's identity.

Identity Theorists

Identity Theorists in philosophy argue that mental states and brain states are exactly the same, in direct opposition to dualism.

Self-Identity

The perception or recognition of one's characteristics, values, and beliefs that define who they are as an individual.