Using the Direct Method

question 69

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.
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When using the direct method, where is the payment of a cash dividend 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:

Intelligence

The ability to acquire knowledge, think abstractly, and solve problems effectively.

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A process in which individuals or groups are systematically blocked from rights, opportunities, and resources that are normally available to members of a society and are key to social integration.

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