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All of the following statements are true regarding cash flow presentations excep

ID: 2381131 • Letter: A

Question

All of the following statements are true regarding cash flow presentations except

Answer

balance sheet provides only limited information about a company's cash flows.

the balance sheet provides information about how property, plant, and equipment were financed.

the income statement does not show how much cash was generated by operating activities.

if cash from operations is compared to net income, information about the quality of reported net income is revealed.

balance sheet provides only limited information about a company's cash flows.

the balance sheet provides information about how property, plant, and equipment were financed.

the income statement does not show how much cash was generated by operating activities.

if cash from operations is compared to net income, information about the quality of reported net income is revealed.

Explanation / Answer

the income statement does not show how much cash was generated by operating activities.