Use the Following Codes to Indicate How the Cash Flow

question 75

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.
-Purchased computer equipment for cash.

• 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:

Official Statistics

Quantitative data and information collected and published by governmental agencies or institutions for economic, demographic, and social analysis.

Child-care

The care and supervision of a child or children, typically from infancy to age thirteen, which includes educational, entertainment, and nutritional components.

Scientific Management

Scientific management is a system of improving productivity developed in the 1910s by Frederick W. Taylor. After analyzing the movements of workers as they did their jobs, Taylor trained them to eliminate unnecessary actions and greatly improve their efficiency.

Unnecessary Actions

Actions or efforts that do not contribute to achieving a goal or are not required for a successful outcome.