The First Item Reported in the Operating Activities Section for a Statement

question 24

Multiple Choice

The first item reported in the operating activities section for a statement of cash flows prepared according to the indirect method is

• A)Cash
• B)Cash received from customers
• C)Increase (decrease)in accounts receivable
• D)Profit
• E)Adjustments to profit

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Definitions:

Amortization Table

A complete schedule of periodic blended loan payments, showing the amount of principal and the amount of interest that comprise each payment so that the loan will be paid off at the end of its term.

Unpaid Principal

The portion of a loan amount that remains to be paid off by the borrower, excluding any interest or other charges.

Property Taxes

Taxes assessed on real estate by the local government, based on the property's value.

Percent Increase

The percentage by which a quantity grows over a specific period of time.