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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