Which of the following statements are correct?
I. A company's choice of accounting principles for financial reporting purposes affects net cash flow for the accounting period.
II. A company's choice of accounting principles for financial reporting purposes does not affect operating cash flow.
III. If a company sells its receivables, this will increase operating cash flow.
IV. If a company sells its receivables, this will increase financing cash flow.

A)I and III
B)I, II, and III
C)II and IV
D)I and IV

Question

Which of the following statements are correct? 
I. A company's choice of accounting principles for financial reporting purposes affects net cash flow for the accounting period.
II. A company's choice of accounting principles for financial reporting purposes does not affect operating cash flow.
III. If a company sells its receivables, this will increase operating cash flow.
IV. If a company sells its receivables, this will increase financing cash flow.

A)I and III
B)I, II, and III
C)II and IV
D)I and IV

Quizplus · Accepted Answer

I. A company's choice of accounting principles for financial reporting purposes affects net cash flow for the accounting period.IV. If a company sells its receivables, this will increase financing cash flow.

Which of the Following Statements Are Correct