NO.PZ2019120301000289
问题如下:
Question Under the indirect method of presenting operating cash flows, which action to alter the cash flow from operations will be most difficult to detect?选项:
A.Defer payment of a current liability B.Transact with an unconsolidated special purpose entity C.Change inventory costing from FIFO to weighted average解释:
SolutionB is correct. Unconsolidated special purpose entities are outside of the view of investors. Transacting with such an entity may initially produce the appearance of a positive or negative cash flow for the controlling company. Ultimately, this transaction will most likely be reversed along with the appearance of the initial cash flow.
A is incorrect because an examination of cash provided by operating activities will reveal that the increase in cash due to the deferred payment is offset by a comparable increase in accounts payable.
C is incorrect because changes in inventory accounting may affect gross profit and therefore net income, but with an opposite effect on the ending inventory value. Together these effects would likely have an offsetting impact on the appearance of cash generated by operating activities. One possible exception might be the effect on derived expenses such as the provision for income tax.
RT