Use the Following Codes to Indicate How the Cash Flow

question 65

Multiple Choice

Use the following codes to indicate how the cash flow effect, if any, of each transaction or event would be reported on a statement of cash flows if the operating activities section is prepared using the indirect method.
-Issued stock to retire bonds.

• A)Operating activity-add to net income
• B)Operating activity-deduct from net income
• 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:

Expertise

Specialized skill or knowledge in a particular field, gained through education, experience, or training.

Uncertainty Avoidance

The degree to which a culture tolerates ambiguity and uncertainty.

Conflict

A situation where two or more parties have incompatible objectives, interests, or needs.

Uncertainty Avoidance

A cultural dimension that describes the extent to which individuals in a society are uncomfortable with ambiguity and uncertainty, often preferring clear rules and predictability.