Using the Indirect Method

question 7

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 the receipt of cash from the sale of long-term investments treated on the statement of cash flows?

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

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Definitions:

Short-Term Memory

The part of the memory system where information is stored for a short duration, typically seconds to minutes.

Henry Molaison (H.M.)

A patient who became an important case study in the understanding of memory after undergoing a surgical procedure that left him with severe anterograde amnesia.

Explicit Memories

Memories that can be consciously recalled, such as facts and events, and are part of the declarative memory system.

Long-Term Memory (LTM)

In the three-box model of memory, the memory system involved in the long-term storage of information.