Seth Is a Law Enforcement Officer Who Has Been Trying

question 16

Multiple Choice

Seth is a law enforcement officer who has been trying to establish probable cause in the case of a person he suspects to be guilty of money laundering. Since mere suspicion is regarded unreasonable unless supported by probable cause, Seth has been referring to eyewitnesses and official sources. Which of the following sources is Seth using to establish probable cause?

• A) Information
• B) Personal observation
• C) Evidence
• D) Association

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Definitions:

Dividends Paid

The portion of a company's earnings distributed to shareholders as a payment, typically in cash or additional shares.

Indirect Method

A way of presenting a cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.

Direct Method

A method of preparing the cash flow statement where actual cash receipts and cash payments are reported, showing the specific sources and uses of cash.

Operating Activities

These are the primary revenue-producing activities of a business, such as selling goods and services, which are reported in the statement of cash flows.