Using the Direct Method

question 10

Multiple Choice

Using the Direct Method
For the following question(s) , indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the direct method.
-
When using the direct method, where is the retirement of bonds payable at their maturity date shown on the statement of cash flows?

• A) Operating activity
• B) Investing activity
• C) Financing activity
• D) Noncash investing and financing activity

---

Definitions:

Androgens

A group of hormones that play a role in male traits and reproductive activity; present in both males and females.

Adrenal Gland

An endocrine gland that produces various hormones including adrenaline and steroids aldosterone and cortisol.

Calcitonin

A hormone produced by the thyroid gland that lowers blood calcium levels by promoting calcium deposit in the bones.

Glucagon

A substance created by the pancreas that increases glucose levels in the blood by encouraging the conversion of glycogen into glucose in the liver.