Which Statement Concerning the Interpretation of a Statement of Cash

question 51

Multiple Choice

Which statement concerning the interpretation of a statement of cash flows is untrue?

• A) The statement of cash flows as required under IAS 7/AASB 107 only goes some of the way in enabling users to establish the liquidity/solvency position of an entity.
• B) Ways in which cash flows can be manipulated include delaying cash payments and employing finance leases.
• C) It is the indirect method rather than the direct method of preparation that is preferred by the standard setters.
• D) The notes to the statement of cash flows are important in interpreting the firm's cash position.

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Definitions:

Aggressive Behavior

Actions that are hostile, destructive, or violent towards others, often resulting from frustration or anger.

Environmental Factors

Influences stemming from one's surroundings that affect various aspects of development and well-being.

Sudden Death

An unexpected, rapid death caused by a sudden health event such as cardiac arrest.

Appropriate Statement

A comment or expression that is deemed suitable for the context or situation it is made in.