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:

Internal Networks

Connections and relationships within an organization that facilitate communication and collaboration among employees.

Information Flows

The movement of information within or between entities, crucial for effective communication, decision-making, and organizational functioning.

Irreplaceable

Describes someone or something so unique and valuable that they cannot be substituted or duplicated.

Work Performed

The tasks or duties carried out by an individual or group in a job, profession, or project.