Which of the Following Statements Concerning the Statement of Cash

question 38

Multiple Choice

Which of the following statements concerning the statement of cash flows is not correct?

• A) It classifies cash flows into operating, investing and financing activities.
• B) It reports on the entity's cash flow position at a specific point in time.
• C) It reports on the entity's cash flow performance over a period of time.
• D) When compared with the income statement, the statement of cash flows shows how well the entity's profits are represented by cash inflows from operating activities.

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Definitions:

Id

In psychoanalytic theory, the part of the psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Primitive Instinctive

Primitive instinctive behavior refers to basic, innate responses or actions that are not learned but are present from birth, aimed at survival and reproduction.

Five-Factor Model

A theory identifying five main personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism, as the basic structure of personality.

Agreeableness

A personality trait characterized by attributes such as trust, altruism, kindness, affection, and other prosocial behaviors.