When Preparing a Consolidated Statement of Cash Flows, Which of the Following

question 79

Multiple Choice

When preparing a consolidated statement of cash flows, which of the following statements is false?

• A) All operating activity items are translated at an average exchange rate for the period.
• B) A change in accounts receivable is translated using the current rate.
• C) A change in long-term debt is translated using the historical rate at the date of the change.
• D) Dividends paid are translated using the historical rate at the date of the payment.
• E) All items follow translation rates used for the balance sheet and the income statement.

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Definitions:

Astro

A prefix referring to stars or celestial bodies.

Neo-

A prefix meaning new or modified, often used in medical terms to indicate something newly formed, such as neo-Darwinism or neoplasm.

Carcin/o

A medical prefix denoting relation to cancer.

Chori/o

A prefix in medical terminology related to membranes or the chorion, particularly in the context of pregnancy and the eye.