Using the Indirect Method

question 18

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 issuing of stock for cash shown on the statement of cash flows?

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

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Definitions:

Minimum Wage

The lowest legal wage that employers can pay their employees, ensuring a basic standard of living.

Compensation Costs

The total of an employer's expenses for employee salaries, wages, benefits, and other forms of compensation.

Competency-Based Pay System

A salary structure that compensates employees based on the specific skills, knowledge, and abilities they bring to their roles, rather than their job title or position.

Absenteeism

The habitual non-presence of an employee at their job, which can be due to various reasons including illness, personal issues, or disengagement with work.