If a Company Has Both an Inflow and Outflow of Cash

question 127

Multiple Choice

If a company has both an inflow and outflow of cash related to the acquisition of equipment for $15,000 cash and the sale of machinery for $10,000 cash, the

• A) cash inflow from the sale and cash outflow for the acquisition should be reported separately in the investing activities section.
• B) two cash effects can be netted and presented as one item in the financing activities section.
• C) cash inflow and cash outflow should be reported separately in the financing activities section.
• D) two cash effects can be netted and presented as one item in the investing activities section.

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Definitions:

Internal Validity

The degree to which an experiment accurately shows that changes in the independent variable caused any observed changes in the dependent variable, minimizing confounding factors.

Demand Characteristics

Psychological experiment artifacts where participants form an interpretation of the study's purpose and unconsciously change their behavior to fit that interpretation.

Experimental Conditions

The controlled environments or set of procedures in scientific research designed to test hypotheses under standardized settings.

Randomly Assigned

A research method where study participants are allocated to different groups on a chance basis, ensuring that each participant has an equal opportunity to be assigned to any given group.