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:

Steroid

Type of lipid molecule having a complex of four carbon rings—e.g., cholesterol, estrogen, progesterone, and testosterone.

Lipid Molecule

Organic molecules that are fatty acids or their derivatives and are insoluble in water but soluble in organic solvents.

Phospholipid

Molecule that forms the bilayer of the cell’s membranes; has a polar, hydrophilic head bonded to two nonpolar, hydrophobic tails.

Functional Group

A specific grouping of atoms within a molecule that is responsible for a characteristic chemical reaction.