When Using the Indirect Method to Determine Operating Cash Flows

question 135

Multiple Choice

When using the indirect method to determine operating cash flows, where is the gain from selling a long-term investment recognized? (The proceeds from selling the investment are considered separately.)

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

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Definitions:

Bacteria

Single-celled, prokaryotic organisms that can be found in various environments, some of which are beneficial while others can cause diseases.

Fungi

A kingdom of spore-producing organisms feeding on organic matter, including molds, yeast, mushrooms, and toadstools, distinct from the green plants, animals, bacteria, and some algae.

Parasitic Consumers

Organisms that feed on other living organisms, deriving nutrients at the host's expense.

Trophic Levels

The positions that organisms occupy in a food chain, which are determined by the number of energy-transfer steps to that level.