Using the Indirect Method

question 50

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 would the retirement of bonds payable at their maturity date be 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:

Elderly Inmates

Older individuals who are incarcerated, often facing unique health, mobility, and social challenges within the prison system.

Corrections

The process or industry associated with penalizing or rehabilitating individuals who have been convicted of crimes.

Habitual Felony Laws

Statutes that increase the punishment for individuals who are convicted of a felony and have prior felony convictions, often leading to longer prison sentences.

Three-Strikes Legislation

Laws that impose severe penalties on repeat offenders after being convicted of three or more serious criminal offenses.