Which of the Following Would Appear on a Statement of Cash

question 9

Multiple Choice

Which of the following would appear on a statement of cash flows prepared using the direct method?

• A)Interest received on a loan would appear on the statement of cash flows.
• B)Collections from customers would appear on the statement of cash flows.
• C)Cash payment of dividends would appear on the statement of cash flows.
• D)All of the above would appear on the statement of cash flows.

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Definitions:

Speculative Motive

The intention to hold cash or other assets in anticipation of profit from fluctuations in their prices or exchange rates.

Investment Opportunities

Options available to individuals and firms to invest capital with the intent to generate returns.

Bargain Purchases

Acquisitions made at a price significantly below the fair market value of the asset, resulting in an immediate gain for the purchaser.