In a Statement of Cash Flows Using the Direct Method,which

question 33

Multiple Choice

In a statement of cash flows using the direct method,which of the following would increase reported cash flows from operating activities?

• A) Dividends received from investments
• B) Gain on sale of equipment
• C) Gain on sale of a business segment
• D) Sale of treasury stock

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Definitions:

Data

Information processed or stored by a computer or other digital device, often presented in numerical form.

Total Factory Overhead Costs

The sum of all indirect costs incurred during the production process, not directly associated with the production of specific goods or services.

Compute

To calculate or determine by mathematical methods.

Month

A period of time, typically used as a basic time unit for planning and accounting, roughly based on the natural period related to the motion of the Moon.