Which statement is NOT correct about cash flow statements?
A) They examine the cash inflows and cash outflows generated by operating activities, investing activities, and financing activities.
B) They examine the cash inflows and cash outflows generated by operating activities, budgeting activities, and financing activities.
C) They reconcile any changes in cash balances between two periods.
D) They reflect the firm's ongoing investment in fixed assets.
B
You might also like to view...
Discuss the proactive approach and the reactive approach to TNA
What will be an ideal response?
A firm is offered credit terms of 1/10 net 45 EOM by a major supplier. The firm has determined that it can stretch the credit period (net period only) by 25 days without damaging its credit standing with the supplier
Assuming the firm needs short-term financing and can borrow from the bank on a line of credit at an interest rate of 14 percent, the firm should ________. A) give up the cash discount and finance the purchase with the line of credit B) give up the cash discount and pay on the 70th day after the date of sale C) take the cash discount and pay on the first day of the cash discount period D) take the cash discount and finance the purchase with the line of credit, the cheaper source of funds