Question
Statement of Cash Flows - which of the following is incorrect? A. The section for operating cash flows removes non-operating items from net income and
Statement of Cash Flows - which of the following is incorrect?
A. | The section for operating cash flows removes non-operating items from net income and converts the items reported on the income statement from the accrual basis of accounting to cash. | |
B. | The section for financing activities reports cash inflows/outflows for debt activity, share issuance/buy-backs, and dividends. | |
C. | Supplemental information reports the exchange of significant items that did not involve cash and reports the amount of income taxes and interest paid. | |
D. | The section for investing activities reports cash inflows/outflows for capital expenditures, security investments, company acquisitions, and intangible assets. | |
E. | The sum of operating cash flows, investing cash flows, and financing cash flows, for the period will represent the total assets for the company on the reporting date. |
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