Which of the following is true concerning the statement of cash flows? a. When pension expense exceeds cash funding, the difference is deducted from investing activities on the statement of cash flows.b. The FASB requires companies to classify all income taxes paid as operating cash outflows.c. Under GAAP, the purchase of land by issuing stock will be shown as a cash outflow under investing activities and a cash inflow under financing activities.d. All of these are true concerning the statement of cash flows.

Question

03-09-2020
Business

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Which of the following is true concerning the statement of cash flows? a. When pension expense exceeds cash funding, the difference is deducted from investing activities on the statement of cash flows.b. The FASB requires companies to classify all income taxes paid as operating cash outflows.c. Under GAAP, the purchase of land by issuing stock will be shown as a cash outflow under investing activities and a cash inflow under financing activities.d. All of these are true concerning the statement of cash flows.

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topeadeniran2 topeadeniran2 · Answer 1 · 2020-09-07T02:15:48+02:00

Answer: a. When pension expense exceeds cash funding, the difference is deducted from investing activities.

c. Under GAAP, the purchase of land by issuing stock will be shown as a cash outflow under investing activities and a cash inflow under financing activities.

Explanation:

The cash flow statement gives information about the financing, operating, and investing, activities of a firm during a period.

Of the options, the ones that are true are:

a. When pension expense exceeds cash funding, the difference is deducted from investing activities.

c. Under GAAP, the purchase of land by issuing stock will be shown as a cash outflow under investing activities and a cash inflow under financing activities.

Therefore, options A and C is the right answer