Assume That the Kelly Company Uses the Indirect Method to Depict

question 147

Multiple Choice

Assume that the Kelly Company uses the indirect method to depict cash flows.Indicate where, if at all, land and building purchased with a mortgage would be classified 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.

---

Definitions:

Contractual Rights

The specific legal rights and obligations that are established by a contract between two or more parties.

Assigned

The process of transferring rights, duties, or properties to another party, often seen in contracts or legal agreements.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing in order to be enforceable.

Contracts

Legally binding agreements between two or more parties that establish obligations which are enforceable by law.