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.

Differentiate between short-run and long-run costs in the context of variable and fixed inputs.

Calculate economic profit, incorporating opportunity costs and explicit costs.

Understand the concept of economic profits, including implicit and explicit costs.

Analyze the impact of investments on the reduction of production costs and its effect on economic profits.

---

Definitions:

Consumers

Individuals or organizations that use economic goods and services generated within the economy, directly affecting demand trends and market dynamics.

Corporate Taxes

Taxes levied by governments on the income or profit of corporations and businesses.

Profits

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Firms

Business organizations involved in the production and sale of goods and services.