Use the Following Codes to Indicate How the Cash Flow

question 150

Multiple Choice

Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method.
-Paid employee salaries and wages.

• A)Inflow from operating activity
• B)Outflow from operating activity
• C)Inflow from investing activity
• D)Outflow from investing activity
• E)Inflow from financing activity
• F)Outflow from financing activity
• G)Noncash investing and financing activity
• H)Not reported on statement of cash flows

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Definitions:

Evidence-Based Management

Translating principles based on the best scientific evidence into organizational practices. Making decisions through the conscientious, explicit, and judicious use of the best available evidence from multiple sources.

Conscientious

Characterized by a high level of care, diligence, and a desire to do a task well, often associated with a strong sense of duty and responsibility.

Explicit

Clearly expressed or fully revealed in the form of details, leaving no room for confusion or doubt.

Judicious

Having, showing, or done with good judgment or sense.