Using the Indirect Method

question 74

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 payment of cash dividends be shown on the statement of cash flows?

• A) Operating activities
• B) Investing activities
• C) Financing activities
• D) Noncash investing and financing activity

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Definitions:

English Liberty

The concept of personal freedoms and rights as traditionally protected and recognized within English common law.

Secular Understanding

A perspective or approach that emphasizes non-religious principles and values, focusing on human reasoning and the material world.

Half-Way Covenant

A religious-political solution adopted by some 17th-century New England Congregational churches, allowing partial church membership for settlers not yet converted but whose lives were not outwardly sinful.