Use the Following Codes to Indicate How the Cash Flow

question 72

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.
-Recognized a gain on the sale of the securities above.

• 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:

Subject's Attention

Subject's attention refers to the focus or concentration of an individual on a specific stimulus or task, determining the degree of cognitive resources allocated to processing information.

Short-Term Memory

The part of the memory system where information is stored for a short duration, typically seconds to minutes, before it is either forgotten or transferred to long-term memory.

Sensory Register

The component of memory that holds incoming information in an unprocessed form for a very brief period of time, allowing for initial perception.

Rehearsed

Refers to the practice or repetition of information to aid in its retention and recall.