Which one of the following statements is false?
A) The statement of cash flows reports the cash receipts and cash payments of an entity over a period of time.
B) Transactions affecting the sale and the purchase or production of goods and services are reported in the operating activities section of the statement of cash flows.
C) Both the statement of cash flows and the income statement determine the net income for a company.
D) Investing activities in the statement of cash flows include acquiring and selling long- term assets.

Question

Quizplus · Accepted Answer

The statement of cash flows does not determine net income; it reports cash inflows and outflows. The income statement determines net income by reporting revenues and expenses.

Which One of the Following Statements Is False