When There Is an Acquisition or Disposal of Subsidiaries and Business

question 14

Multiple Choice

When there is an acquisition or disposal of subsidiaries and business units:

• A)the associated cash flows are classified as non-operating
• B)the associated cash flows are allocated between operating, financing and investing activities
• C)the resulting cash flows are classified as relating to investing activities
• D)the associated cash flows are presented separately from those cash flows relating to investing, financing and operating activities.

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Definitions:

Laws Guaranteeing

Regulations and statutes that ensure certain rights or benefits.

Ingroup Bias

The tendency to favor and extend loyalty to members of one's own group over those of a different group.

Ingroup Favoritism

The tendency to give preferential treatment and express positive attitudes towards members of one's own group over those from other groups.

Outgroup Favoritism

The phenomenon where a person prefers and supports the members of a group they are not part of over their own group.