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:

Sales Revenues

The total amount of money generated from sales of goods or services before any expenses are subtracted.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and packaging.

Scattergraph Method

A statistical tool used to plot data points on a graph to identify potential trends, often used in cost accounting to analyze variable costs against a level of activity.

Cost Behaviours

Describes how different types of costs change or remain constant with variations in business operations' volume or scale.