Avatar Company Uses the Indirect Method to Prepare Its Statement

question 151

True/False

Avatar Company uses the indirect method to prepare its statement of cash flows. The treasury stock account had a debit balance of $5,000 at the beginning of the year, and a debit balance of $8,000 at the end of the year. No treasury stock was sold during the year.
The financing section of the statement of cash flows will show a negative cash flow of $3,000 for purchases of treasury stock.

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Definitions:

Business Messages

Communication conveyed through various formats (emails, memos, reports) intended for business contexts.

Planning Tasks

The process of defining and organizing activities or steps required to achieve a specific goal or objective within a set timeframe.

Defining Purpose

Establishing the main goal or objective of an activity, project, or piece of work.

Audience Needs

The interests, preferences, background knowledge, and objectives of the intended audience.