Using the Indirect Method

question 5

Multiple Choice

Using the Indirect 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 indirect method.
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When using the indirect method, where is an increase in accounts receivable during the year shown on the statement of cash flows?

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

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Definitions:

Limnetic Zone

The open, sunlit surface layer away from the shore of a freshwater body, where photosynthesis can occur, supporting a wide range of plankton and fish species.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water, generating oxygen as a byproduct.

Anaerobic

Growing or metabolizing in the absence of molecular oxygen. Compare with aerobic.

Few Organisms

A term referring to a small number or limited diversity of living entities in a given area or ecosystem.