Use the Following Codes to Indicate How the Cash Flow

question 55

Multiple Choice

Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method. (Choices may be used more than once.)
-Received payments from accounts receivable.

• A)Inflow from operating activity
• B)Outflow from operating activity
• C)Inflow from investing activity
• D)Outflow from investing activity
• E)Inflow from financing activity
• F)Outflow from financing activity
• G)Noncash investing and financing activity
• H)Not reported on statement of cash flows

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Definitions:

Criterion Validity

An attribute of a test, when it gives higher scores to people already known to have greater ability in the area it tests. The concept arises because some qualities are easier to recognize than to define completely, such as artistic ability.

Construct Validity

A measure of how well a test or experiment measures up to its claims or theoretical assumptions.

Analogue Observational Setting

An artificial environment set up in an office or laboratory to elicit specific classes of behaviour in individuals. Used when in vivo observation in the natural environment is impractical because of time constraints and the unpredictability of modern family life.

Subject Reactivity

A phenomenon in which individuals alter their behavior or responses due to their awareness of being observed or studied.