1 pts Regarding a statement of cash flows, only material items that affect the i

Question

1 pts Regarding a statement of cash flows, only material items that affect the income statement are included on the statement. O True O False DQuestion 25 1 pts The term, "realized" in revenue recognition refers to which of the following? The entity has completed, or substantially completed, the activities it must perform to be entitled to the revenue benefits. O The product or service has been exchanged for cash, claims to cash, or an asset that is readily convertible to a known amount of cash or claims to cash. The entity has received an irrevocable order for goods or services 0 none of the above a and b are both correct 6 MacBook Air

Explanation / Answer

Cash flow statement is prepared by taking all cash inflows and Cash outflows irrespective of its materiality. Cash flow Statement is prepared by showing seperately cash flow from operating Activities, Investing Activities and Financing Activities. Therefore all cash flows are included, materiality is irrelavant.

Answer False

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