Use the Following Codes to Indicate How the Cash Flow

question 171

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.)
-Paid interest on a capital lease.

• 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:

Liberalism

A political and moral philosophy promoting individual freedoms, democracy, and equality before the law, often emphasizing the protection of personal rights.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined mainly by competition in a free market.

McWorld

A concept introduced by Benjamin Barber to describe the globalizing, homogenizing force of capitalism and consumer culture.

Benjamin Barber

A political theorist known for his work on democracy and civil society, particularly his critique of global capitalism and argument for more participatory forms of democracy.