Which of the following statements is false?
A)The statement of cash flows reports the cash receipts and cash payments of an entity over a period of time.
B)The statement of cash flows is similar to the income statement,as they both determine the net income for a company.
C)The operating activities in a cash flow statement include transactions that affect the sale and the purchase or production of goods and services.
D)Investing activities in a cash flow statement include acquiring and selling long-term assets.
E)Financing activities in a cash flow statement include obtaining resources from owners and creditors and repaying amounts borrowed.

Question

Quizplus · Accepted Answer

The statement of cash flows and the income statement serve different purposes. The income statement calculates the net income for a company by subtracting expenses from revenues, while the statement of cash flows reports the actual cash inflows and outflows over a period of time.

Which of the Following Statements Is False