Use the Following Information for Questions

question 109

Multiple Choice

Use the following information for questions
Boreal Corporation is a private corporation reporting under ASPE and uses the indirect method when preparing its statement of cash flows.The company has engaged in the following transactions.For each transaction, indicate where it would be reflected on the statement of cash flows.
-An increase in inventory from year one to year two:

• A)operating activities section
• B)investing activities section
• C)financing activities section
• D)does not represent a cash flow

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Definitions:

Unethical

Pertaining to actions or behaviors that go against moral principles or professional standards.

Obedience

A form of social influence where an individual acts in response to a direct order from another individual, who is usually an authority figure.

Federal Aid

Financial assistance provided by the federal government to individuals, organizations, or governmental entities in support of services or projects.

Obedience To Authority

The action of following orders or directions from those in positions of power, even if it goes against one's own beliefs or morals.