When Using the Indirect Method, How Is an Increase in Accounts

question 136

Multiple Choice

When using the indirect method, how is an increase in accounts receivable during the year shown on the statement of cash flows?

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

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Definitions:

Financial Management

The practice of planning, directing, controlling, and managing an organization's financial activities, such as procurement and utilization of funds.

Clustering

The task of grouping a set of objects in such a way that objects in the same group (called a cluster) are more similar to each other than to those in other groups.

Associations

Groups or organizations formed by people who share common interests, goals, or purposes.

Brainstorming

Brainstorming is a creative group problem-solving and idea-generating technique aiming to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its members.