Which of the Following Statements Is False with Regard to Investments

question 43

Multiple Choice

Which of the following statements is false with regard to investments and the cash flow statement?

• A)Dividends received from stock investments increase cash flows from investing activities.
• B)Income from investments accounted for using the equity method does not create cash flows.
• C)Sale of stock investments is a cash inflow from investing activities.
• D)Dividends received from stock investments accounted for using the equity method are not reported as income but are reported as cash flows.

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