Use the Following Codes to Indicate How the Cash Flow

question 62

Multiple Choice

Use the following codes to indicate how the cash flow effect, if any, of each transaction or event would be reported on a statement of cash flows if the operating activities section is prepared using the indirect method.
-Issued twenty-year bonds.

• A)Operating activity-add to net income
• B)Operating activity-deduct from net income
• 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:

Flow

A mental state of deep involvement and immersion in an activity where an individual experiences focus, engagement, and a sense of satisfaction.

Effort

The use of physical or mental energy to achieve a goal or accomplish a task.

Personal Constructs

Cognitive structures individuals use to interpret and predict events, prominently featured in George Kelly’s personal construct theory.

Cognitive Scripts

Mental representations of sequences of events or actions, guiding behavior and understanding in specific contexts.