Which of the Following Is False Concerning the Statement of Cash

question 18

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 IASB requires companies to classify all income taxes paid as operating cash outflows.
• C)Under IFRS, the purchase of land by issuing ordinary shares will be shown as a cash outflow under investing activities and a cash inflow under financing activities.
• D)All of these answer choices are false concerning the statement of cash flows.

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Definitions:

Accounts Payable

Refers to the amount a company owes to suppliers or vendors for goods and services received but not yet paid for.

Accounting Equation

The fundamental principle of accounting that states assets equal liabilities plus owner's equity (Assets = Liabilities + Owner's Equity).

Asset

Resources owned by a company that have economic value and can provide future benefits, such as cash, inventory, and equipment.

Liability

A liability refers to financial obligations or debts that a company owes and is required to repay in the future.