When Using the Indirect Method to Determine Operating Cash Flows

question 122

Multiple Choice

When using the indirect method to determine operating cash flows, how is the issuing of stock for cash shown on the Statement of Cash Flows?

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

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Definitions:

Reason for Existence

The fundamental purpose or mission that justifies an organization’s or entity’s creation and operations.

Core Values

Fundamental beliefs or guiding principles that dictate behavior and action within an organization, shaping its culture and decisions.

Organisational Behaviour

The study of individuals and groups in organisations.

Peter Drucker

A pioneering management consultant, educator, and author, whose extensive writings on management practices and business philosophies have had a significant influence on modern organizational management.