For Each of the Following Activities That May Take Place

question 143

Multiple Choice

For each of the following activities that may take place during the accounting period, indicate the effect a-g on the statement of cash flows prepared using the indirect method.Choices may be selected as the answer for more than one question.
-gain on sale of investments

• A)increase cash from operating activities
• B)decrease cash from operating activities
• C)increase cash from investing activities
• D)decrease cash from investing activities
• E)increase cash from financing activities
• F)decrease cash from financing activities
• G)noncash investing and financing supplement

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Definitions:

Cash Account

An account that tracks the amount of cash on hand, including currency, checks, and balances in bank accounts.

Accounts Receivable

Debts owed by clients to a firm for goods or services provided but not yet compensated for.

Sales Revenue

The overall amount of money a business earns through the sale of products or services, prior to deducting any costs.

Cash Account

An account that records all transactions involving cash inflows and outflows.