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.

---

Definitions:

Logical Incrementalism

A business strategy approach that involves making small, deliberate steps or changes rather than large, comprehensive shifts, to gradually improve or adapt.

General Acceptance

The widespread agreement or approval by a majority within a particular group or society.

Poorly Defined

Lacking clear boundaries, descriptions, or criteria, making understanding or interpretation difficult.

Resist Change

The resistance to alter existing processes, habits, or conditions despite potential benefits or pressures.