An Important Potential Problem with Using Symbols to Represent a Problem

question 14

Multiple Choice

An important potential problem with using symbols to represent a problem is that

• A) people typically use at least twice as many symbols as they need.
• B) people usually construct a hierarchical tree diagram, even though they intended to use symbols.
• C) people insert the symbols into the wrong matrix.
• D) people have trouble translating words into the appropriate symbols.

---

Definitions:

Investing Activities

Transactions involving the acquisition or disposal of non-current assets, such as property, plant, and equipment, included in a company’s cash flow statement.

Statement of Cash Flows

A financial document that provides detailed information about a company's cash inflows and outflows over a specific period.

Direct Method

A approach used in cash flow statement preparation that lists all major operating cash receipts and payments for the period, directly showing sources and uses of cash.

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and investments, as part of a company's cash flow statement.