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:

Battery

A device consisting of one or more electrochemical cells that convert stored chemical energy into electrical energy, used as a power source for electronic devices.

Charging

The process of adding electrical energy to a battery or capacitor, storing it in a form that can be released later as electrical power.

Amperes

A unit of electric current in the International System of Units (SI), representing the flow of one coulomb of charge per second.

Carrying Capacity

The maximum amount of electric current a conductor or device can carry before degradation occurs, specified by its rating.