Which statement is not true? Current GAAP
A)requires that the cash flows from extraordinary items be reported as investing or financing activities and not be included in net cash flow from operating activities
B)states that cash flow per share must not be reported in a company's financial statements
C)states that under the indirect method, a company must report its operating cash inflows separately from its operating cash outflows
D)requires that the cash inflows and cash outflows for related investing activities as well as related financing activities be shown separately and not netted against each other

Question

Quizplus · Accepted Answer

Current GAAP does not require that a company report its operating cash inflows separately from its operating cash outflows when using the indirect method for the statement of cash flows. Instead, the indirect method starts with net income and adjusts for changes in balance sheet accounts to arrive at cash provided by operating activities.

Which Statement Is Not True? Current GAAP