On the Statement of Cash Flows, the Operating Activities Section

question 38

Multiple Choice

On the statement of cash flows, the operating activities section prepared using the direct method would include

• A)receipts from the issue of common shares.
• B)receipts from the sale of investments.
• C)payments for the acquisition of investments.
• D)cash receipts from sales activities.

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Definitions:

Broadleaf Trees

Trees characterized by wide, flat leaves as opposed to needle-like leaves, common in deciduous forests.

Dormant

A state of physical or biological inactivity or rest, during which growth, development, and physical activity are temporarily stopped.

Chaparrals

A biome characterized by dense, evergreen shrubs and is found in regions with a Mediterranean climate, including parts of California and the Mediterranean basin.

Latitudes

The measurement of distance north or south of the Equator, expressed in degrees, that affects climate, daylight, and biological phenomena.