When Using the Direct Method to Determine Operating Cash Flows

question 110

Multiple Choice

When using the direct method to determine operating cash flows, how is the sale of long-term investments for cash reported on the Statement of Cash Flows?

• A)operating activity
• B)investing activity
• C)financing activity
• D)noncash investing and financing activity
• E)not reported on the statement of cash flows

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Definitions:

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, often in a more conservative or riskier direction.

Production Blocking

A phenomenon where group members have to wait on each other before they can propose their ideas, leading to a slowdown in the creative process.

Delphi Method

A structured communication technique, often used in forecasting and decision making, that relies on a panel of experts answering questionnaires in two or more rounds.

Nominal Group Technique

A systematic technique for facilitating brainstorming in a group setting, ensuring all members have the opportunity to contribute.