On the Statement of Cash Flows, the Operating Activities Section

question 38

Multiple Choice

On the statement of cash flows, the operating activities section prepared using the direct method would include

• A)receipts from the issue of common shares.
• B)receipts from the sale of investments.
• C)payments for the acquisition of investments.
• D)cash receipts from sales activities.

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Definitions:

Law of Contracts

A legal framework governing the creation, execution, and enforcement of agreements between parties.

Deeds

Legal documents that represent the ownership of, or an interest in, real property, and outline rights, obligations, and other conditions.

Land Conveyed

Refers to the process of transferring ownership of real estate from one party to another through a legal document such as a deed.

Estate Conveyed

The process of transferring property ownership, typically through a legal deed, from one party to another.