Assume That the Zahler Corporation Uses the Indirect Method to Depict

question 177

Multiple Choice

Assume that the Zahler Corporation uses the indirect method to depict cash flows.Indicate where, if at all, treasury stock purchased with cash 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:

Probable Likelihood

A term indicating a high chance of occurrence or expectation that an event will happen.

Liability Estimation

The process of assessing the potential liabilities or debts that a business may incur in the future.

Estimable Liability

A financial obligation or debt that can be accurately estimated and measured for accounting and reporting purposes.

Probable Likelihood

The significant chance or high probability that an event will occur, often used in risk assessment.