Question : Which of the following statements TRUE regarding a statement of : 8135
Which of the following statements is TRUE regarding a statement of cash flows?
A statement of cash flows measures the profitability of a company using the cash basis of accounting.
Two different methods may be used to compute the net cash flows from operating, investing, and financing activities.
Noncash investing and financing activities need to be disclosed under “other activities.”
The statement of cash flows reports the changes in cash and cash equivalents.
Which of the following is a cash equivalent?
Certificates of deposit that mature in less than three months
Certificates of deposit that mature in one year or less