When Using the Indirect Method to Determine Operating Cash Flows

question 160

Multiple Choice

When using the indirect method to determine operating cash flows, how is an increase in accounts receivable during the year shown 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:

Ingratiation

A psychological technique where an individual attempts to become more likable to their target, often through flattery or other forms of manipulation.

Self-monitoring

The process of observing and regulating one's own behavior in social situations to fit social norms or expectations.

False Consensus

The cognitive bias of overestimating how much others share our beliefs, attitudes, and behaviors.

Narcissistic

Pertaining to, exhibiting, or characterized by narcissism, which is excessive self-focus, self-admiration, and a lack of empathy for others.