When Preparing the Statement of Cash Flows Using the Indirect

question 71

Multiple Choice

When preparing the statement of cash flows using the indirect method,the purchase of equipment 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

---

Definitions:

International Loans

Loans that are made across national borders, often involving different currencies and international financial institutions.

Living Standard

The quality and quantity of goods and services available to individuals or societies, including health, comfort, and leisure time activities.

Self-Supporting

Having the ability to provide for oneself without relying on external assistance.

Foreign Aid

Financial or in-kind assistance given by one country to another, often for humanitarian, development, or diplomatic reasons.