Which of the Following Sections of the Statement of Cash

question 51

Multiple Choice

Which of the following sections of the statement of cash flows include activities that increase and decrease long-term assets?

• A) the financing activities section
• B) the operating activities section
• C) the investing activities section
• D) the non-cash investing and financing section

Analyze the relationship between reported profits and actual cash flow.

Determine actions that impact a company's cash balance.

Evaluate the role of net income and cash flow in investor decision-making.

Understand the impact of taxation on corporate financing decisions.

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Definitions:

Consolidated Financial Statements

Financial statements that aggregate the financial condition and operations of a parent company and its subsidiaries into one document, as if they were a single entity.

Book Values

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus any depreciation.

Fair Values

The amount one would expect to get from selling an asset or the cost to transfer a liability, in a structured deal involving participants in the market on the date it's evaluated.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its identifiable tangible and intangible assets.