Which of the following is true about the Statement of Cash Flows (SCF)?
A)The SCF is more subject to manipulation than the income statement.
B)Cash flow from financing activities is considered to be the most important part of the SCF.
C)Classification rules prevent manipulation of cash flows from operating activities on the SCF.
D)Flexibility in applying classification rules on the SCF allows companies in the same industry to give vastly different perspectives.

Question

Quizplus · Accepted Answer

The Statement of Cash Flows (SCF) allows for some flexibility in classification rules, which can lead to companies within the same industry presenting their cash flows in ways that may not be directly comparable. This flexibility can result in different perspectives on a company's cash flow situation, even among similar businesses.

Which of the Following Is True About the Statement of Cash