If a Company Is Using the Indirect Method to Prepare

question 2

Multiple Choice

If a company is using the indirect method to prepare the statement of cash flows, identify where an increase in the accounts receivable account should be reported:

• A) A decrease in cash flows from investing activities
• B) An increase in cash flows from operating activities
• C) An increase in cash flows from investing activities
• D) A decrease in cash flows from operating activities
• E) An increase in cash flows from financing activities

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Definitions:

Disclosing

The act of making something known or public, especially information that was previously secret or private.

Alternatives

Other options or choices available in a given situation or for solving a particular problem.

Transparency

The practice of being open, honest, and straightforward about various activities, operations, or decisions.

Stealth Marketing

Marketing strategies that aim to advertise a product to people without them realizing they are being marketed to.