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:

Bright Lights

Intense or high levels of illumination, which can affect mood and alertness and are used therapeutically in treating conditions like seasonal affective disorder.

Night Shift

A work shift that takes place during the nighttime hours, typically involving work hours that occur when most people are asleep.

Tropical Animals

Species adapted to survive in the tropical climate zones, which are characterized by high temperatures and significant rainfall.

Predators

Organisms that hunt and kill other organisms for food.