Amortization of excesses in periods subsequent to the purchase would affect which sections of a consolidated statement of cash flows?

Question

Quizplus · Accepted Answer

Amortization of excesses is a non-cash expense that affects the company's net income and therefore the operating section of the consolidated statement of cash flows. It represents the allocation of the premium paid over the acquired company's identifiable net assets and is recorded as an intangible asset on the balance sheet. As it is a non-cash expense, it does not impact the cash flow from financing or investing activities.

Amortization of Excesses in Periods Subsequent to the Purchase Would