Which statement is false? Current GAAP
A) requires that the cash flows from the issuance of stock be reported as a financing activity and not be included in net cash flow from operating activities.
B) does not allow cash flow per share reporting in a company's financial statements.
C) states that under the indirect method, a company must report its operating cash inflows separately from its operating cash outflows.
D) requires that the cash inflows and cash outflows for related investing activities as well as related financing activities be shown separately and not netted against each other.

Question

Quizplus · Accepted Answer

Under GAAP, when using the indirect method for reporting cash flows from operating activities, a company starts with net income and then makes adjustments to reconcile net income to net cash provided by operating activities. It does not require the separate reporting of operating cash inflows and outflows.

Which Statement Is False? Current GAAP