Which Assertion Relating to the Statement of Cash Flows Is

question 4

Multiple Choice

Which assertion relating to the statement of cash flows is incorrect?

• A) Cash flows from one activity are not normally offset against cash flows from a different activity.
• B) GST is not included anywhere in the statement of cash flows.
• C) Cash outflows are shown in brackets.
• D) The statement is headed 'for the period ended'.

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Definitions:

Fiduciary Duty

A legal obligation of one party to act in the best interest of another. The obligated party is typically someone entrusted with the care of money or property, like a trustee or legal guardian.

Legal Obligation

A duty enforced by law, requiring an individual or organization to follow or avoid a particular course of action.

Moral

Pertaining to the principles of right and wrong behavior and the goodness or badness of human character.

Partnership Termination

The process of dissolving a business partnership, involving the liquidation of assets, settlement of debts, and distribution of remaining assets among partners.