3. Which of the following is NOT an issue that prevents reliance on the statement of cash flows in calculating free cash flows? a. The Statement of Cash Flows may be manipulated because GAAP allows managers discretion on when to record cash transactions b. On Statement of Cash Flows, Allocation of taxes between operating and financial activities is ignored c. Significant non-cash transactions are omitted which may be part operational and part financial (for example purchasing an asset with a loan) d. On Statement of Cash Flows, Interest expense is left in operating section e. On the statement of Cash Flows, the operating section is not purely related to operating activities
3. Which of the following is NOT an issue that prevents reliance on the statement of cash flows in calculating free cash flows? a. The Statement of Cash Flows may be manipulated because GAAP allows managers discretion on when to record cash transactions b. On Statement of Cash Flows, Allocation of taxes between operating and financial activities is ignored c. Significant non-cash transactions are omitted which may be part operational and part financial (for example purchasing an asset with a loan) d. On Statement of Cash Flows, Interest expense is left in operating section e. On the statement of Cash Flows, the operating section is not purely related to operating activities
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter1: Accounting And The Financial Statements
Section: Chapter Questions
Problem 12MCQ: Which of the following sentences regarding the statement of cash flows is false? The statement of...
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