If a Company Has Both an Inflow and Outflow of Cash

question 23

Multiple Choice

If a company has both an inflow and outflow of cash related to property plant and equipment the

• A) two cash effects can be netted and presented as one item in the investing activities section.
• B) cash inflow and cash outflow should be reported separately in the investing activities section.
• C) two cash effects can be netted and presented as one item in the financing activities section.
• D) cash inflow and cash outflow should be reported separately in the financing activities section.

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Definitions:

Incremental

Pertaining to gradual or step-by-step progression or increase, often used in the context of developments or changes.

Active Verbal

refers to the use of spoken words in a dynamic and engaging manner to communicate.

Invulnerable

means not susceptible to harm, damage, or being hurt, emotionally or physically.

Acquiescent

Displaying agreement or compliance without protest or enthusiasm.