Which statement is false regarding the financial statements?
A) The statement of cash flows reports the sources and uses of cash during the accounting period.
B) Expenses on the income statement are reported as incurred, not as paid.
C) Distributions to owners (dividends) are reported in the income statement.
D) Current assets reported in the statement of financial position are generally reported in order of their liquidity.

Question

Quizplus · Accepted Answer

Distributions to owners (dividends) are typically not reported on the income statement. Instead, they are reported in the statement of changes in equity.

Which Statement Is False Regarding the Financial Statements