Assume That the Quinn Corporation Uses the Indirect Method to Depict

question 22

Multiple Choice

Assume that the Quinn Corporation uses the indirect method to depict cash flows. Indicate where, if at all, dividends received on securities held 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.

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Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, aimed at harmonizing laws across the states.

Time Instrument

A legal document that promises payment of a specified amount of money at a set time or times in the future.

Overdue

A term describing a payment not made by its due date or an action not completed by the scheduled time.

Installment Payment

A method of payment where the total cost is divided into multiple scheduled payments over a period.