Assume That the Decker Corporation Uses the Indirect Method to Depict

question 13

Multiple Choice

Assume that the Decker Corporation uses the indirect method to depict cash flows.Indicate where, if at all, dividends received on securities held would be reported on the statement of cash flows.

• A)Operating activities section.
• B)Investing activities section.
• C)Financing activities section.
• D)Does not represent a cash flow.

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Definitions:

Retained Earnings

The portion of a company's profit that is held or retained and not paid out as dividends to shareholders.

Interest Rate Swap

A financial derivative contract in which two parties agree to exchange one stream of interest payments for another, based on a specified principal amount.

Fixed Rate

A fixed rate refers to an interest rate for a loan or mortgage that remains constant over the term of the loan.