Which of the Following Would Not Affect the Operating Activities

question 15

Multiple Choice

Which of the following would not affect the operating activities section of the statement of cash flows, using the indirect method?

• A) Decrease in merchandise inventory
• B) Payment on a note payable
• C) Decrease in unearned rent
• D) Depreciation expense

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Definitions:

Resource Value

The worth of a resource based on its ability to produce goods, provide services, or satisfy needs and wants in an economy.

Property Rights

The legal rights to own, use, and dispose of land, buildings, or goods, protected under law.

Economic Profit

The disparity between a company's complete earnings and its aggregate expenses, covering both direct (explicit) and indirect (implicit) costs.

Human Capital

The collective skills, knowledge, and experiences possessed by an individual or population, viewed in terms of their value to an organization or society.