Which of the Following Is False Concerning the Statement of Cash

question 11

Multiple Choice

Which of the following is false concerning the statement of cash flows?

• A) When pension expense exceeds cash funding, the difference is deducted from investing activities on the statement of cash flows.
• B) The FASB requires companies to classify all income taxes paid as operating cash outflows.
• C) Under U.S. GAAP, the purchase of land by issuing stock will be shown as a cash outflow under investing activities and a cash inflow under financing activities.
• D) All of the above are true concerning the statement of cash flows.

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Definitions:

Selective Attention

The process by which one focuses on one input or task while ignoring other stimuli or information.

Inattentional Blindness

A psychological lack of attention that is not associated with any vision defects or deficits, where an individual fails to perceive an unexpected stimulus that is in plain sight when other attention-demanding tasks are being performed.

Daydreaming

A mild, self-generated form of detachment from immediate surroundings, characterized by a person's drift of attention away from the task at hand.

Dreaming

A series of thoughts, images, and sensations occurring in a person's mind during sleep, often reflecting unconscious material.