Which of the Following Statements Is Correct with Regard to Investments

question 39

Multiple Choice

Which of the following statements is correct with regard to investments and the statement of cash flows?

• A)When the equity method is used to account for an investment in a company's common stock, the reported share of affiliate net income must be added to net income in the operating activities section of the statement of cash flows.
• B)When the equity method is used to account for an investment in a company's common stock, the cash dividends received are a cash inflow from investing activities.
• C)Any realized or unrealized gains or losses that were reported on the income statement under the fair value method of accounting for investments must be removed from net income in the operating activities section of the statement of cash flows.
• D)When the equity method is used to account for an investment in a company's common stock, the reported share of affiliate dividends must be deducted from net income in the operating activities section of the statement of cash flows.

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Definitions:

Tensions Management

The process of dealing with and balancing various opposing forces or elements within personal or professional contexts, aiming to reduce conflict and maintain stability.

Coercive Conflict

A destructive form of conflict where parties attempt to force their will on others, often involving threats or intimidation.

De-escalation Stage

A phase in conflict resolution where tensions and conflicts are reduced or eliminated.

Preinteraction Awareness

The stage of becoming aware of someone before direct interaction begins.