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Which of the following statements about the statement of cash flows is not corre

ID: 2475447 • Letter: W

Question

Which of the following statements about the statement of cash flows is not correct?

It does not replace the income statement.

It provides details as to how cash changed during a period.

It provides information about cash receipts and cash payments over a period of time.

It measures profitability.

Cash flows from operating activities include all of the following except:

a purchase of land.

collections from customers on account.

payments to employees for hours worked.

receipt of cash dividends.

Which of the following statements about the statement of cash flows is not correct?

The statement of cash flows can be used to assess the likelihood of a company paying dividends.

Net cash flow is the best measure of profitability since it does not rely on estimates.

A company can have positive net income but at the same time have negative cash flow.

The statement of cash flows is the only financial statement that reports business activities.

Explanation / Answer

It meaure profitability is not correct.

Receipt of cash dividend is not include in oprating activties.

The statement of cash flows is the only financial statement that reports business activities.is not correct

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