Which of the following statements about the cash flow statement is FALSE?
A)The statement of cash flows reports the cash receipts and payments of an entity over a period of time.
B)The investing section of the statement of cash flows reports acquisitions and sales of long-term assets.
C)The financing section of the statement of cash flows reports the payment of dividends.
D)The operating section of the statement of cash flows reports the declaration of cash dividends.

Question

Quizplus · Accepted Answer

The operating section of the statement of cash flows reports the cash inflows and outflows from the entity's primary business activities, such as sales and expenses. It does not report the declaration of cash dividends, which is a financing activity and would be included in the financing section. Therefore, option D is the false statement.

Which of the Following Statements About the Cash Flow Statement