The Following Information Is Reported in the Operating Activities Section

question 28

Multiple Choice

The following information is reported in the operating activities section of Gateway's statement of cash flows for 2014: Which one of the following conclusions can be assumed from the information provided?

• A) Gateway used the direct method to determine cash flows from operating activities.
• B) Gateway purchased more merchandise than it sold in 2014.
• C) Cash payments for merchandise purchases were less than the amount of merchandise purchased on credit during 2014.
• D) Cash payments for merchandise exceeded cost of goods sold by $200,000.

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Definitions:

Projection

A defense mechanism in which an individual ascribes their own unacceptable thoughts, feelings, or impulses to others.

Sexual Jokes

Humorous expressions or stories that involve sexual content, often used to break the ice or entertain, but can sometimes be inappropriate or offensive.

Tension Reduction

The process of relieving stress or strain, often through relaxation techniques or activities.

Humor Content

Humor content refers to the subject matter, theme, or essence of what makes something humorous or comedic.