Use the Following Codes to Indicate How the Cash Flow

question 71

Multiple Choice

Use the following codes to indicate how the cash flow effect, if any, of each transaction or event would be reported on a statement of cash flows if the operating activities section is prepared using the indirect method. (Choices may be used more than once.)
-Recognized a gain on the sale of securities.

• A)Operating activity--add to net income
• B)Operating activity--deduct from net income
• C)Inflow from investing activity
• D)Outflow from investing activity
• E)Inflow from financing activity
• F)Outflow from financing activity
• G)Noncash investing and financing activity
• H)Not reported on statement of cash flows

Comprehend and apply the concept of residual income for performance evaluation.

Understand the implications of fixed expenses, sales, and contribution margin ratios on financial decision-making.

Apply theoretical knowledge to calculate average operating assets from given operational data.

Interpret the impact of various financial opportunities on company turnover and margin.

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