Which of the following sentences regarding the statement of cash flows is false?
Concept Introduction:
Cash Flow statement:
The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:
To choose:
The False statement regarding the Statements of Cash flows.
Explanation for correct answer: The Statement of Cash flows cannot be used by creditors to assess the credibility of the company because credibility can be analysed by using the balance sheet. Hence this is the right answer.
Explanation for incorrect answers:
a. Cash flow statement shows the movement of cash during a particular period; hence it is not the right answer.
b...
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