How Would These Items Be Classified in a Cash Flow

question 34

Multiple Choice

How would these items be classified in a cash flow statement prepared for a hairdressing franchise? i. Payment of $600 for hairdressing supplies
Ii) Takings from customers for the month
Iii) Capital paid into the business by the owner

• A) i. investing outflow; ii. operating inflow; iii. financing inflow
• B) i. operating outflow; ii. operating inflow; iii. does not appear in the cash flow statement
• C) i. operating outflow; ii. operating inflow; iii. investing inflow
• D) i. operating outflow; ii. operating inflow; iii. financing inflow

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Definitions:

Fritsch and Hitzig

Fritsch and Hitzig were pioneering neuroscientists known for their research demonstrating the electrical excitability of the cerebral cortex.

Electrical Potential

The amount of electric potential energy per unit charge at a specific point in an electric field, influencing the movement of charged particles.

Electric Charge

A physical property of matter that causes it to experience a force when placed in an electromagnetic field, fundamental to electricity.

René Descartes

A French philosopher, mathematician, and scientist who is considered one of the founders of modern philosophy, known for "Cogito, ergo sum" ("I think, therefore I am").