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? 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
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