Using the Indirect Method

question 83

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 issuance of stock to retire a long-term debt shown 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:

Conversion Disorder

A mental condition where psychological stress is expressed as physical symptoms, without any underlying physical cause.

Neurobiological Conditions

Disorders of the nervous system attributable to biological factors, affecting the brain's structure, chemistry, or function.

Motor Function

The ability of an individual to move and control movements of the body, primarily referring to physical coordination and mobility.

Sensory Function

The ability of the body to receive and process stimuli from the environment through the senses, such as sight, hearing, taste, touch, and smell.