The Sonesta Company Uses the Indirect Method for the Statement

question 67

Multiple Choice

The Sonesta Company uses the indirect method for the statement of cash flows. In 2013, they purchased equipment for $10,000 cash. Which of the following statements is TRUE?

• A) $10,000 would be shown as a negative cash flow in the operating activities section.
• B) $10,000 would be shown as a negative cash flow in the investing activities section.
• C) $10,000 would be shown as a positive cash flow in the investing activities section.
• D) $10,000 would be shown as a positive cash flow in the financing activities section.

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Definitions:

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Preincorporation Contracts

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