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

question 93

Multiple Choice

When preparing a consolidating 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:

Orienting Reflex

The instinctual reaction of an organism to a novel stimulus, often involving attention redirection towards the source of the stimulus.

Stimulus

Any event or situation that evokes a response or reaction from an organism or system.

Intrinsic Motivation

The drive to engage in an activity for its own sake, because it is interesting and satisfying in itself, not for some separate outcome.

Creativity at Work

The ability to generate innovative and useful ideas and solutions within a professional context.