In the preparation of a Statement of Cash Flows:
A)The statement must include most noncash exchanges.
B)The statement must be prepared using the working capital definition of funds.
C)Stock dividends and stock splits must be reported on the statement.
D)The statement must be cumulative over the last two reporting periods.
E)None of these answers are correct.

Question

Quizplus · Accepted Answer

The Statement of Cash Flows focuses on cash transactions and does not require reporting noncash exchanges, stock dividends, or stock splits. It is not cumulative over two periods and does not use the working capital definition of funds.

In the Preparation of a Statement of Cash Flows