When Using the Direct Method to Determine Operating Cash Flows

question 110

Multiple Choice

When using the direct method to determine operating cash flows, how is the sale of long-term investments for cash reported on the Statement of Cash Flows?

• A)operating activity
• B)investing activity
• C)financing activity
• D)noncash investing and financing activity
• E)not reported on the statement of cash flows

---

Definitions:

Lactase

An enzyme that breaks down lactose into glucose and galactose, facilitating the digestion of milk products.

Antioxidant

Chemical agent that fights cell-destroying chemical substances called free radicals.

Vitamin E

A fat-soluble antioxidant vitamin that helps protect cells from oxidative damage.

Blood Clot

A mass formed by the coagulation of blood to stop bleeding in response to an injury or cut.