Solved

Which of the Following Statements Best Describes the Statement of Cash

Question 32

Multiple Choice

Which of the following statements best describes the statement of cash flows?

A) The statement of cash flows reflects cash flows from operations, but it does not reflect the effects of buying or selling fixed assets.
B) The statement of cash flows reflects cash flows from continuing operations, but it does not reflect the effects of changes in working capital.
C) The statement of cash flows reflects cash flows from operations and from borrowings, but it does not reflect cash obtained by selling new common stock.
D) The statement of cash flows shows how much the firm's cash--the total of currency, bank deposits, and short-term liquid securities (or cash equivalents) - increased or decreased during a given year.

Correct Answer: