q14 – I have selected the right answer but confused that how cash flow from operating activities will remain unchanged under USGAAP if disc rate is rising? isn’t int expenses recorded in operating activities under USGAAP?
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NO, CFO Will not be affected as Cash Flow statements is concerned with Actual Cash Inflow or Outflow, Interest Expenses is booked on Accrual Basis, so when you take interest expense as an outflow in CFO at the same time, you have to Show the change in liabilities also in Cash flow (L1 Basics ), so inflow and outflow setoff each other and CFO wouldn’t be affected.
NO, CFO Will not be affected as Cash Flow statements is concerned with Actual Cash Inflow or Outflow, Interest Expenses is booked on Accrual Basis, so when you take interest expense as an outflow in CFO at the same time, you have to Show the change in liabilities also in Cash flow (L1 Basics ), so inflow and outflow setoff each other and CFO wouldn’t be affected.