Which statement is incorrect about the cash flow statement?
A)The cash flow statement can be prepared using the direct method.
B)The cash flow statement can be prepared using the indirect method.
C)The cash flow statement provides information on the economic performance of the company.
D)The cash flow statement shows the change in cash and cash equivalents over the year.

Question

Quizplus · Accepted Answer

The cash flow statement provides information on the cash inflows and outflows of the company, but it does not necessarily provide information on the economic performance of the company. Other financial statements, such as the income statement and balance sheet, are better suited for that purpose.

Which Statement Is Incorrect About the Cash Flow Statement