Which of the Following Statements Is Correct with Regard to Investments

question 65

Multiple Choice

Which of the following statements is correct with regard to investments and the statement of cash flows?

• A)When the equity method is used to account for an investment in an investee company's common stock,the reported share of affiliate net income must be added to net income in the operating activities section of the statement of cash flows.
• B)When the equity method is used to account for an investment in an investee company's common stock,the cash dividends received are a cash inflow from investing activities.
• C)Any unrealized gains or losses that were reported on the income statement under the fair value method of accounting for investments must be removed from net income in the operating activities section of the statement of cash flows.
• D)When the equity method is used to account for an investment in an investee company's common stock,the reported share of affiliate dividends must be deducted from net income in the operating activities section of the statement of cash flows.

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Definitions:

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The segment of the mind that isn't presently at the forefront of consciousness yet affects thoughts, emotions, and behaviors.

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Techniques or practices aimed at managing and mitigating feelings of anger.

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Broad, unspecific statements or ideas that lack detailed information or differentiation.