Under the Direct Method of the Statement of Cash Flows

question 60

Multiple Choice

Under the direct method of the statement of cash flows, cash paid for salaries would result in:

• A) a decrease of cash flow from operating activities.
• B) a decrease of cash flow from investing activities.
• C) an increase of cash flow from financing activities.
• D) a decrease of cash flow from financing activities.

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Definitions:

Absolute Advantage

The ability of a country, individual, or firm to produce more of a good or service with the same amount of resources compared to others.

Coffee

Coffee is a brewed drink prepared from roasted coffee beans, the seeds of berries from certain Coffea species.

Salmon

A species of fish that is often found in the Northern Atlantic and Pacific oceans, known for their migration from ocean to freshwater to spawn.

Absolute Advantage

The ability of an individual, firm, or country to produce more of a good or service than competitors, using the same amount of resources.