In USGAAP, Which of the Following Accurately Describe(s) the Effects of of Transactions

question 105

Multiple Choice

In U.S.GAAP, which of the following accurately describe(s) the effects of transactions involving investments on the statement of cash flows?

• A)If investor acquired the debt at a price below par, then cash flow from operations includes only the interest coupon received.
• B)If the holder acquired the debt at a price below par, then cash flow from operations will include the amount of interest revenue for the period, with source of the remainder of the cash received appearing as a [dis-]investing activity, the same as the proceeds of selling an investment.
• C)When using the indirect method, add back realized holding losses, and subtract realized holding gains included in income for the period to derive cash flow from operations.
• D)Investor's cash flow from operations increases by only the amount of dividends received.In the indirect method, deduct the investor's share of the undistributed earnings of the investee.
• E)all of the above

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Definitions:

Narrow Span of Management

An organizational structure where managers supervise a small number of subordinates, allowing for more detailed oversight and personalized management.

Proximity

The state of being near or close in space, time, or relationship, often impacting decision-making or behavior in various contexts.