Using the Indirect Method

question 5

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 an increase in accounts receivable during the year 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:

Point Estimate

A single value given as an estimate of a population parameter derived from a sample.

Simple Random Samples

A subset of individuals chosen from a larger set such that every individual has an equal chance of being selected.

Random Samples

Samples chosen from a larger set or population where each individual or event has an equal chance of being selected.

Population

The total set of observations or data that can be collected or referenced in a statistical analysis.