Which statement is NOT correct about cash flow statements?
A)They examine the cash inflows and cash outflows generated by operating activities,investing activities,and financing activities.
B)They examine the cash inflows and cash outflows generated by operating activities,budgeting activities,and financing activities.
C)They reconcile any changes in cash balances between two periods.
D)They reflect the firm's ongoing investment in fixed assets.

Question

Quizplus · Accepted Answer

Cash flow statements do not examine budgets, but instead examine the actual cash inflows and outflows generated by the company's operating, investing, and financing activities. Option A, C, and D are all correct statements about cash flow statements.

Which Statement Is NOT Correct About Cash Flow Statements