Which of the following statements is true as it pertains to the statement of cash flows?
A)It has three main sections: net cash flow from operating,investing,and financing activities.
B)It may only be computed directly.
C)It is a statement used to better understand the equity of a company.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The statement of cash flows has three main sections: net cash flow from operating, investing, and financing activities. B is incorrect as the statement of cash flows can be computed directly or indirectly. C is incorrect as the statement of cash flows is used to better understand the cash position of a company, not equity.

Which of the Following Statements Is True as It Pertains