How Many of These Are Limitations of a Statement of Cash

question 34

Multiple Choice

How many of these are limitations of a statement of cash flows?
Only past cash flows are reported
Cash flows can be manipulated,e.g. postponing expenditures
Non-cash transactions can be significant in affecting future investing and financing cash flows

• A) 0
• B) 1
• C) 2
• D) 3

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Definitions:

Accumulated Depreciation

Is the total depreciation of a company's fixed assets up to a specified time, reflecting how much of the asset's value has been used up.

Initial Cost

The original expense incurred to purchase an asset or the cost associated with starting a project.

Gain Or Loss

The financial result that occurs when the selling price of an asset differs from its purchase price.

Batting Cages

Enclosed areas designed for practicing batting skills in baseball or softball, usually equipped with pitching machines.