Given Below Is a List of Events: 1

question 149

Multiple Choice

Given below is a list of events: 1. payment of employee wages
2) cash collections from customers
3) sale of capital stock
4) sale of land, at cost
5) payment of a cash dividend
6) borrow cash from creditors
7) purchase of equipment
8) cash sale of inventory
9) purchase inventory on account
Which of the above events are outflows in the operating section of the statement of cash flows?

• A) 1, 5, and 9
• B) 1 and 9
• C) 2 and 8
• D) only 1

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Definitions:

Yardstick Approach

A method of evaluation that uses a specific standard or benchmark as a basis for comparison or judgment.

Organizational Approach

A method or strategy used by an organization to achieve its goals, often involving structure, planning, and management practices.

Circumstances

The conditions or facts affecting a situation, event, or action.

Example

A representative instance or case used to illustrate or explain a rule, method, or condition.