When Preparing a Statement of Cash Flows Using the Indirect

question 62

Multiple Choice

When preparing a statement of cash flows using the indirect method,the amortization of trademarks should be reported as a(n)

• A) increase in cash flows from investing activities.
• B) reduction in cash flows from investing activities.
• C) increase in cash flows from operating activities.
• D) reduction in cash flows from operating activities.

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Definitions:

Housekeeper

An individual responsible for maintaining cleanliness, order, and hygiene in a living or working environment.

Maintenance Staff

Individuals responsible for the upkeep, repair, and preservation of buildings, grounds, and equipment to ensure they are in safe, working condition.

Facsimile Machine

A piece of office equipment used to send a facsimile, or fax, over telephone lines from one modem to another; more commonly called a fax machine.

Electronic Impulses

Electrical signals that are transmitted for communication between various components of an electronic or biological system.