Which one of the following is false?
A)The statement of cash flows can be prepared using cash and cash equivalents rather than just cash, as its base.
B)The statement of cash flows reports the sources and uses of cash during a specific period.
C)The statement of cash flows shows the effects on net income of a company's operating, investing, and financing activities for an accounting period.
D)The statement of cash flows explains the difference between net income, as shown on the statement of income, and the net cash flows generated from operating activities.

Question

Quizplus · Accepted Answer

The statement of cash flows does not show the effects on net income of a company's operating, investing, and financing activities. Instead, it reports the cash inflows and outflows from these activities, which may not directly affect net income within the same accounting period.

Which One of the Following Is False