Which of the Following Would Appear in Both the Operating

question 11

Multiple Choice

Which of the following would appear in both the operating activities section of the direct method format and the reconciliation of earnings to net operating cash flow format?

• A) Sale of cash equivalents at a gain
• B) Sale of cash equivalents at cost
• C) Dividends received on equity method investments
• D) Collection of an account receivable previously written off

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Definitions:

Quantity Supplied

The total amount of a particular good or service that producers are willing and able to sell at a given price over a specified period.

Quantity Demanded

The amount of a good or service that consumers are willing and able to buy at a specific price.

Surplus

The situation in which the quantity of goods or services supplied exceeds the quantity demanded at the current price.

Quantity Supplied

the amount of a good or service that producers are willing and able to sell at a given price over a specific period.