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:

Maxillae

The pair of large facial bones that form the upper jaw and parts of the orbits of the eyes, necessary for chewing and supporting the face.

Mandible

The lower jawbone in vertebrates, which holds the lower teeth in place and forms the structure necessary for chewing.

Vomer Bone

A small, thin bone forming part of the nasal septum, which divides the nasal cavity into two nostrils.

Frontal Bone

The bone that forms the front part of the skull and the upper part of the eye sockets (orbits).