Which Statement Is Untrue

question 8

Multiple Choice

Which statement is untrue?

• A) The statement of cash flows can provide information about the causes of changes in the entity's cash position over the period.
• B) Analysis of an entity's cash flow position requires an examination of trends in statement of cash flows items over several years.
• C) The statement of cash flows can explain the effects of operating activities on the entity's cash position.
• D) The statement of cash flows effectively duplicates the function of the cash budget.

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Definitions:

Governmental Contracts

Agreements entered into by government agencies with private entities or individuals for the supply of goods, services, or the undertaking of works.

Offerees

Individuals or entities to whom an offer is made, which they can either accept or reject.

Present Intent

A legal term referring to an individual's current intention to perform an act or designate a legal status, crucial for the validity of certain legal documents and transactions.

Definiteness

A characteristic of a contract that requires its terms to be clear enough for the parties involved to understand their obligations and rights.