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 does not include noncash exchanges, does not require the use of the working capital definition of funds, does not require stock dividends and stock splits to be reported on the statement, and is not cumulative over the last two reporting periods.

In the Preparation of a Statement of Cash Flows