Both U.S.GAAP and IFRS permit considerable flexibility with respect to the display of information in the statement of cash flows.Firms must report the beginning and ending cash balances, and the change in the cash balance. The change in cash must reconcile to the sum of the cash inflows and outflows from _____ activities.
A)operating
B)investing
C)financing
D)operating, investing, and financing
E)none of the above

Question

Quizplus · Accepted Answer

Both U.S.GAAP and IFRS require firms to report the change in cash balance, which must reconcile to the sum of the cash inflows and outflows from operating, investing, and financing activities. Therefore, the correct choice is D.

Both USGAAP and IFRS Permit Considerable Flexibility with Respect to the the Display