When Preparing a Statement of Cash Flows Using the Indirect

question 179

Multiple Choice

When preparing a statement of cash flows using the indirect method, which of the following is correct?

• A) The declaration of a cash dividend should be a use of cash in the financing activities section.
• B) The issuance of a stock dividend should be a use of cash in the financing activities section.
• C) The purchase of land and a building by issuing a long-term note payable should be a source of cash in the financing activities section.
• D) Proceeds from the sale of equipment should be added to net income in the operating activities section.
• E) A loss on the sale of land should be added to net income in the operating activities section.

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Definitions:

Will to Live

A fundamental drive or motivation inherent in humans and animals aimed at survival and continuation.

Schopenhauer's Metaphysics

The philosophical inquiry concerning the nature of reality and the fundamental structure of the world as outlined by Arthur Schopenhauer, emphasizing the will as the underlying essence of all things.

Optimistic

Having a hopeful or positive outlook on the future, believing that the best possible outcome will occur.

Kant

Immanuel Kant was a German philosopher who is a central figure in modern philosophy, known for his works on epistemology, ethics, and aesthetics.