Which of the Following Items Would Be Reported on a Statement

question 166

Multiple Choice

Which of the following items would be reported on a statement of cash flows using the indirect method,but not on a statement prepared using the direct method?

• A)Cash paid for dividends.
• B)Cash received from stock issuances.
• C)Depreciation expense.
• D)Cash paid for purchase of treasury stock.

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Definitions:

Expected Return

The anticipated return on an investment, calculated based on the probabilities of various outcomes.

Portfolio

A collection of financial assets such as stocks, bonds, commodities, currencies, and cash equivalents held by an investment company, institution, or individual.

Portfolio

A group of financial instruments comprising equities, debentures, commodities, liquid assets, and near cash items, in addition to closed-end funds and exchange traded funds (ETFs).

Alpha Stock

A stock that is expected to outperform the broader market, typically showing a positive alpha indicating better than expected returns.