Which one of the following isfalse?

The statement of cash flows explains the difference between net income, as shown on the income statement, and the net cash flows generated from operating activities.

The statement of cash flows shows the effects on net income of a company's operating, investing, and financing activities for an accounting period.

The statement of cash flows can be prepared using cash and cash equivalents rather than just cash, as its base.

The statement of cash flows reports the sources and uses of cash during a specific period.