On a Statement of Cash Flows (Indirect Method), Which Item

question 65

Multiple Choice

On a statement of cash flows (indirect method) , which item is reported as a line item under cash from operating activities?

• A)sale of securities
• B)purchase of fixed assets
• C)purchase of securities
• D)amortization expense

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Definitions:

Nonprogrammed Decision

This type of decision is made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization.

Reordering

The process of ordering additional stock to replenish inventory before it runs out.

Office Supplies

Items used in offices for daily operations, including paper, pens, computers, and furniture.