Avatar Company Uses the Indirect Method to Prepare Its Statement

question 79

Multiple Choice

Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information:
• Repayments on long-term notes payable: $40,000
• New borrowing on long-term notes payable: $34,000
Which of the following statements is accurate regarding the statement of cash flows?

• A) $34,000 will be shown as a positive cash flow in the investing section.
• B) $40,000 will be shown as a positive cash flow in the financing section.
• C) $34,000 will be shown as a positive cash flow in the financing section.
• D) $40,000 will be shown as a negative cash flow in the investing section.

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Definitions:

FSH

Follicle Stimulating Hormone (FSH) is a horm

Primitive Streak

A structure that forms in the early stages of embryonic development in birds and mammals, initiating gastrulation.

Gastrulation

An early embryonic phase in animal development during which the single-layered blastula is reorganized into a multilayered structure known as the gastrula.

Somite Formation

Somite formation refers to the process during embryonic development where cells in the presomitic mesoderm segment into somites, which are precursors to the vertebrate skeletal muscles, vertebrae, and dermis.