When Using the Indirect Method to Determine Operating Cash Flows

question 169

Multiple Choice

When using the indirect method to determine operating cash flows, how is the decrease in accounts payable shown 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

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The process of identifying, assessing, and responding to potential issues or risks that could impact an organization, in order to mitigate negative effects.

Warranty Repairs

Services provided to fix or replace a product within the warranty period at no charge to the customer, under the terms of the warranty agreement.

Keyboard Defect

A flaw or malfunction in a computer keyboard, which can hinder the user's ability to input data efficiently and accurately.

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A significant business problem that threatens the reputation or financial stability of a company, requiring immediate action.