Treatments of Items in the Cash Flow Statement That Differ

question 20

Multiple Choice

Treatments of items in the cash flow statement that differ between IFRS and GAAP include all of the following except the allowed treatment of

• A)any cash outflows for development costs that were capitalized as intangible assets
• B)losses on the early retirement of bonds
• C)bank overdrafts
• D)income taxes related to financing and investing activities

---

Definitions:

Necessities

Basic needs or essential items required for living and maintaining a good life.

Chain-Weighted Price Index

Cost-of-living index that accounts for changes in quantities of goods and services.

Quantities

The amount or number of a material or immaterial good considered as a unit or in discrete portions.

Industrialized Countries

Nations with significant industrial activity, high levels of income per capita, and widespread infrastructure.