When Using the Direct Method to Determine Operating Cash Flows

question 112

Multiple Choice

When using the direct method to determine operating cash flows, how is the payment of a cash dividend 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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Definitions:

Legislative Fiat

Law enacted by the legislature or authority, often without the need for a specific process of approval or consideration.

Lower Courts

Courts that have limited jurisdiction over certain types of cases or that are the first level of the court system, beneath appellate or supreme courts.

Constitutionality

The quality or state of being in accordance with the constitution or established laws of a country.

Unfettered State Autonomy

A situation where a state or region has complete independence and freedom from external control in governing its affairs.