For Each of the Following Items, Indicate by Using the Appropriate

question 172

Short Answer

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the direct method.
A. Added in determining cash receipts from customers
B. Deducted in determining cash receipts from customers
C. Added in determining cash payments to suppliers
D. Deducted in determining cash payments to suppliers
E. Cash outflow-investing activity
F. Cash inflow-investing activity
G. Cash outflow-financing activity
H. Cash inflow-financing activity
I. Significant noncash investing and financing activity
J. Is not shown
____ 1. Decrease in accounts payable during a period.
____ 2. Declaration and payment of a cash dividend.
____ 3. Decrease in accounts receivable during a period.
____ 4. Depreciation expense.
____ 5. Conversion of bonds payable into common stock.
____ 6. Decrease in merchandise inventory during a period.
____ 7. Sale of equipment for cash at book value.
____ 8. Issuance of preferred stock for cash.
____ 9. Purchase of land for cash.
____ 10. Loss on sale of a plant asset.

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Definitions:

Sense of Taste

One of the five senses, culminating from the ability to perceive and distinguish flavors through the taste buds in the mouth.

Hypertension

A chronic medical condition in which the blood pressure in the arteries is persistently elevated.

Sense of Taste

The ability to perceive and distinguish different flavors, which is one of the five traditional senses.

Hippocampal Volume

The size or capacity of the hippocampus, a brain region critical for memory and learning.