The Statement of Cash Flows Reports

question 76

Multiple Choice

The statement of cash flows reports:

• A) Cash flows from operating activities.
• B) Cash flows from financing activities.
• C) Cash flows from investing activities.
• D) Significant noncash financing and investing activities.
• E) All of these.

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Definitions:

Service Cost

In accounting, refers to the expense recognized for employees' future retirement benefits earned during the current period.

Interest Cost

The total amount of interest on all outstanding debts over a period, representing the cost of borrowing funds.

Prior Service Cost Amortization

involves the gradual recognition of the expenses related to pension plan benefits earned by employees in previous periods, over current and future periods.

Defined Benefit Pension Plan

A retirement plan where employee benefits are calculated using a formula that considers factors like length of employment and salary history, with the employer bearing the investment risk.