For Each Item Listed Below, Identify How It Will Be

question 68

Multiple Choice

For each item listed below, identify how it will be reported on the Statement of Cash Flows under the indirect method.
-Decrease in accounts receivable

• A)Operating activity
• B)Investing activity
• C)Financing activity
• D)Not reported separately on the cash flow statement

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Definitions:

Management by Exception

A management strategy where managers only intervene in decision making when performance deviates significantly from standards, allowing more focus on important issues.

Controllable

Refers to costs or elements within a business that can be directly managed, influenced, or altered by decisions of management.

Noncontrollable

Refers to expenses or influences that cannot be altered or changed by the management due to external constraints or fixed contract terms.

Flexible Budget

A budget that adjusts or varies with changes in the volume or activity level of a company.