When Using the Indirect Method, How Is the Receipt of Cash

question 20

Multiple Choice

When using the indirect method, how is the receipt of cash from the sale of long-term investments treated on the statement of cash flows?

• A) Operating activity
• B) Investing activity
• C) Financing activity
• D) Noncash investing or financing activity

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Definitions:

Accommodation

A cognitive process outlined in Jean Piaget's theory of cognitive development, referring to how we alter our existing frameworks or ideas to incorporate new information.

Assimilation

The process by which a person or a group's language and/or culture come to resemble those of another group, often leading to the diminution of the original culture.

Conservation

In cognitive development, the understanding that certain properties of objects, such as volume or mass, remain the same even when their forms or appearances change.

Egocentrism

The cognitive inability to differentiate between one's own perspective and another person's perspective.