Use the Following Codes to Indicate How the Cash Flow

question 150

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.
-Paid employee salaries and wages.

• 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:

Discriminant Validity

The measure of how much a test does not relate to variables or measures it should not be associated with.

Correlation Coefficient

The relationship between two sets of scores. Correlation coefficients range from +1 to -1 and generally are reported in decimals of one-hundredths. A positive correlation shows a tendency for scores to be related in the same direction, while a negative correlation indicates an inverse relationship.

Verbal Reasoning

The ability to understand and reason using concepts framed in words, often assessed through standardized tests.

Problem Solving

The process of identifying solutions to specific issues by employing logical and creative thinking strategies.