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Which of the following statements is not true regarding cash flow from operating activities?

a) It includes transactions related to core business operations.
b) It reflects changes in working capital.
c) It considers interest and dividends received.
d) It encompasses financing and investing activities.

1 Answer

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Final answer:

Cash flow from operating activities includes transactions related to core business operations, reflects changes in working capital, and considers interest and dividends received, but it does not encompass financing and investing activities.

Step-by-step explanation:

The correct answer is d) It encompasses financing and investing activities. Cash flow from operating activities refers to the cash generated or used by a company's core business operations, such as sales of goods or services. It includes transactions related to core business operations, reflects changes in working capital, and considers interest and dividends received.

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