When Preparing the Statement of Cash Flows Using the Indirect

question 6

Multiple Choice

When preparing the statement of cash flows using the indirect method,the sale of marketable securities would appear as:

• A) a use of cash in the investing activities section
• B) a source of cash in the investing activities section
• C) a use of cash in the financing activities section
• D) a source of cash in the financing activities section

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Definitions:

Legally Pay

The act of disbursing salaries, wages, or payments in accordance with the laws and regulations governing employment and financial transactions.

Firms

Businesses or economic entities that engage in the production and sale of goods or services to consumers.

African-American Families

Families of African descent living in the United States, with histories and cultures that have significantly shaped American society.

White Families

Refers to households or family units identified as white based on racial or ethnic classification, often used in demographic and socio-economic analyses.