Using the Direct Method of Preparing the Statement of Cash

question 81

Multiple Choice

Using the direct method of preparing the statement of cash flows, which of the following is not an activity generating operating cash flows?

• A)Collections from customers
• B)Collection of notes receivable
• C)Payments for income taxes
• D)Payments to employees

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Definitions:

Court Structure

The organized hierarchy of courts within a particular jurisdiction, ranging from lower courts to higher appellate courts, forming a framework for legal adjudication and appeal.

Standard of Proof

The level of certainty and the degree of evidence necessary to affirm a decision in criminal or civil proceedings.

Civil Action

A legal proceeding in which a person seeks to resolve a non-criminal dispute or claim against another party in a court of law.

Criminal Trial

A Criminal Trial is a legal process in which an accused person is tried in a court, judged by a jury or judge, and either found guilty or acquitted based on the evidence presented.