Ashley Couses the Direct Method in Calculating Its Cash Flow from from Operations.Which

question 148

Multiple Choice

Ashley Co.uses the direct method in calculating its cash flow from operations.Which of the following items will not have an effect on cash flow from operating activities?

• A)Increase in inventory.
• B)Payment of dividends to stockholders.
• C)Cash collections from customers.
• D)Payment of interest to lenders.

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Definitions:

Organization Impact

Pertains to the effect that an organization's actions have on its stakeholders, including employees, customers, communities, and the environment.

Intrapreneurship

The practice of fostering entrepreneurial behavior within a large organization to develop new products or technologies.

Command and Control

A hierarchical organizational structure and management style where decisions and directives come from the top and are implemented without questioning by lower levels of the organization.

Innovation

The process of translating an idea or invention into a good or service that creates value or for which customers will pay.