On a Statement of Cash Flows Prepared by Using the Direct

question 96

Multiple Choice

On a statement of cash flows prepared by using the direct method,cash receipts from interest and dividends are classified as:

• A)operating activities.
• B)investing activities.
• C)financing activities.
• D)noncash activities.

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Definitions:

Good-Faith Exception

A legal doctrine allowing evidence collected in violation of privacy rights to be admitted in court if it was obtained by officers who reasonably believed their actions were legal.

Litigants

Individuals, companies, or parties involved in a lawsuit either as plaintiffs or defendants.

Racketeering Activity

An illegal activity performed as part of an organized crime operation.

Professional's Conduct

The manner in which professionals are expected to behave, typically guided by ethical rules and standards of their profession.