Which of the Following Statements About the Calculation of Cash

question 101

Multiple Choice

Which of the following statements about the calculation of cash flows from operating activities under the direct method is correct?

• A)When the direct method is used,each revenue and expense account on the income statement is individually examined to calculate the cash flows from operating activities.
• B)Noncash revenues and expenses must be included in cash flows from operating activities when preparing a statement of cash flows using the direct method.
• C)Depreciation is reported as a cash inflow in the cash flows from operating activities when the direct method is used.
• D)A loss on the sale of a long-term asset is subtracted in the cash flows from operating activities when the direct method is used.

Understand the concepts of random assignment and its importance in experimental research.

Appreciate the ethical considerations in research with human participants.

Recognize the application of research methods to investigate behavior in natural settings.

Understand how descriptive and inferential statistics are used to summarize research findings.

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Definitions:

Oral Stop Payment Order

A verbal instruction to a financial institution to not pay out or process a specific check or transaction.

Electronic Fund Systems

Systems that enable the electronic transfer of money from one bank account to another without the direct involvement of bank staff.

Automated Teller Machines

Electronic banking outlets that allow customers to complete transactions without the need for a branch representative.

Direct Deposits

Direct Deposits involve the electronic transfer of a payment directly from the account of the payer to the recipient's account, commonly used for payroll or benefit disbursements.