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:

Subsidiaries

Subsidiaries are companies that are controlled or owned by another larger parent company.

Headquarters

The main office or center of operations of a company or organization, where key decisions are made and administrative functions are conducted.

Media Choice

The selection of a means of communication or the medium through which a message or content is delivered.

Communication

The process of sharing information, ideas, or feelings between individuals or groups, typically for mutual understanding or cooperation.