Use the Following Codes to Indicate How the Cash Flow

question 131

Multiple Choice

Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method.
-Received payments from credit sales.

• A)Inflow from operating activity
• B)Outflow from operating activity
• C)Inflow from investing activity
• D)Outflow from investing activity
• E)Inflow from financing activity
• F)Outflow from financing activity
• G)Noncash investing and financing activity
• H)Not reported on statement of cash flows

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Definitions:

Withdrawal

A psychological or physical retreat from a situation, relationship, or obligation.

Progression

Refers to the act of moving forward or advancing towards a more developed state or stage.

Stimulating Performance

The process of encouraging or motivating employees to improve their work output or to perform at a higher standard.

Job Descriptive Index

A survey instrument that measures employees' job satisfaction with various aspects of their job, including the work itself, supervision, pay, co-workers, and opportunities for promotion.