Which of the following statements is CORRECT? The statement of cash flows reflects cash flows from operations and from borrowings, but it does not reflect cash obtained by selling new common stock. The statement of cash flows shows how much the firm's cash and short-term liquid securities (or cash equivalents), increased or decreased during a given year. The statement of cash flows reflects cash flows from operations, but it does not reflect the effects of buying or selling fixed assets. The statement of cash flows shows where the firm's cash is located; indeed, it provides a listing of all banks and brokerage houses where cash is on deposit. The statement of cash flows reflects cash flows from continuing operations, but it does not reflect the effects of changes in working capital.
Which of the following statements is CORRECT?
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The statement of cash flows reflects cash flows from operations and from borrowings, but it does not reflect cash obtained by selling new common stock. |
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The statement of cash flows shows how much the firm's cash and short-term liquid securities (or cash equivalents), increased or decreased during a given year. |
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The statement of cash flows reflects cash flows from operations, but it does not reflect the effects of buying or selling fixed assets. |
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The statement of cash flows shows where the firm's cash is located; indeed, it provides a listing of all banks and brokerage houses where cash is on deposit. |
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The statement of cash flows reflects cash flows from continuing operations, but it does not reflect the effects of changes in |
Introduction:-
The cash flow statement includes cash flows from activities and borrowings, but not cash received from the sale of new common stock. The cash flow statement illustrates how much the company's cash and short-term liquid securities (or cash equivalents) rose or declined over the course of a year. The cash flow statement includes cash flows from activities, but not the consequences of purchasing or selling fixed assets. The statement of cash flows reveals where the company's cash is kept, including a list of all banks and brokerage houses where cash is held. The cash flow statement includes cash flows from ongoing activities but excludes the impact of changes in working capital.
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