Preparation of the Statement of Cash Flows Does Not Involve

question 3

Multiple Choice

Preparation of the statement of cash flows does not involve:

• A)Computing the net increase or decrease in cash.
• B)Computing and reporting net cash provided or used by operations.
• C)Computing the profit compared to the net increase or decrease in cash.
• D)Computing and reporting net cash provided or used by financing activities.
• E)Computing and reporting net cash provided or used by investing activities.

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Definitions:

International Accounting Standards

A set of accounting guidelines that aim to standardize accounting practices across countries, facilitating the comparison of financial statements globally.

Multinational Corporations

Large corporations that operate and provide goods or services in multiple countries.

Information Technology

The study or use of systems (especially computers and telecommunications) for storing, retrieving, and sending information.

International Standards

These are agreements set by international organizations that dictate certain specifications, guidelines, or characteristics to ensure products, services, and systems are safe, reliable, and interchangeable worldwide.