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:

Debt-equity Ratio

An indicator measuring the relative funding of a company's assets from debt versus shareholders' equity.

Weighted Average Cost

An inventory valuation method that assigns a cost to inventory and goods sold based on the average cost of all similar goods available during a specific period.

Tax Rate

The determined percentage of earnings that an individual or a corporation must contribute as tax.

Debt-equity Ratio

This ratio compares a company's total liabilities to its shareholder equity, indicating the relative proportion of shareholder equity and debt used to finance a company's assets.