All of the following statements are true, EXCEPT
A) to analyze operations properly you need both the Statement of Income and the Statement of Cash Flows.
B) in the long run total profits and net cash flows will be very similar.
C) the Statement of Cash Flows considers events that the Statement of Income does not.
D) the Statement of Cash Flows and the Statement of Income both cover the period of a year because profits and cash flows are very similar over the period of a year.

Question

Quizplus · Accepted Answer

The statement "the Statement of Cash Flows and the Statement of Income both cover the period of a year because profits and cash flows are very similar over the period of a year" is not true. The Statement of Cash Flows covers a specific period of time (usually a year), but the Statement of Income can cover a different period of time (such as a quarter or a month).

All of the Following Statements Are True, EXCEPT