For Each of the Following Activities That May Take Place

question 151

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.
-acquisition of treasury stock

• 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

Understand the components that make up a balance sheet or statement of financial position.

Calculate and interpret net income.

Calculate and interpret return on assets.

Identify the basic financial statements and their exclusions.

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Definitions:

Blank Indorsement

An indorsement made by a signature alone, with no particular indorsee, written on a negotiable instrument.

Warranties by Indorsers

Guarantees made by indorsers about the validity and enforceability of negotiable instruments.

Alteration

A change or modification made to an object, document, or system, often intended to improve functionality or appearance.

Foreign Draft

A financial instrument used in international trade, drawn by an exporter on a foreign buyer, which orders the payment of a specified amount of money.