If a company were to manipulate the statement of cash flows to please analysts,it would most likely report cash received ________.
A)from the sale of stock as cash from the sale of intangible assets
B)from the sale of intangible assets as cash from the sale of capital assets
C)from loans as cash collected from customers
D)from the sale of land as cash received from the issuance of stock

Question

Quizplus · Accepted Answer

Manipulating the statement of cash flows to appear more favorable often involves presenting cash inflows in a way that suggests the core business operations are stronger than they actually are. Reporting cash received from loans as cash collected from customers would falsely inflate operating cash flows, making the company's operational performance appear better to analysts and investors. Choices A, B, and D involve reclassifying cash flows in ways that do not directly enhance the appearance of operational cash flow strength.

If a Company Were to Manipulate the Statement of Cash