Which of the Following Statements Is True About the Consolidated

question 27

Multiple Choice

Which of the following statements is true about the consolidated statement of cash flows?

• A)​The purchase of intercompany bonds from parties outside the consolidated group is treated as a retirement of consolidated debt; the payment is reported as a cash outflow from financing activities.
• B)​The purchase of intercompany bonds from parties outside the consolidated group is treated as a retirement of consolidated debt; the payment is reported as a cash outflow from investing activities.
• C)​Intercompany interest payments and amortization of premiums and/or discounts on intercompany bonds are reported in the operating activities section of the statement.
• D)Intercompany interest payments and amortization of premiums and/or discounts on intercompany bonds are reported in the investing activities section of the statement.​

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Definitions:

Labor Force

The total number of people available for work, including both the employed and the unemployed.

Presidential Election

The process by which the president of a country is elected, typically involving a direct vote by the citizens or an electoral college system.

American Citizenship

The status of being a citizen of the United States, entitling one to rights, privileges, and duties under the U.S. Constitution and laws.

Puerto Ricans

Refers to the people from Puerto Rico or of Puerto Rican descent.