When Using the Indirect Method, How Is the Receipt of Cash

question 20

Multiple Choice

When using the indirect method, how is the receipt of cash from the sale of long-term investments treated on the statement of cash flows?

• A) Operating activity
• B) Investing activity
• C) Financing activity
• D) Noncash investing or financing activity

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Definitions:

Logarithms

A logarithm with a specified base is the exponent by which the base must be raised to yield a particular number. It is a different way to express exponentiation.

Condense

The process of combining several mathematical expressions or elements into a simpler form.

Equation

A declaration in mathematics that claims two expressions, often comprising variables and constants, are equal.

Logarithm

The degree to which a base, typically 10 or e, must be raised to yield a certain number.