Using the Direct Method to Prepare the Statement of Cash

question 17

Multiple Choice

Using the direct method to prepare the statement of cash flows, cash payments for merchandise inventory is categorized on the statement of cash flows as

• A)a cash payment in the operating activities section on the statement of cash flows.
• B)a cash receipt in the operating activities section on the statement of cash flows.
• C)a cash payment in the investing activities section on the statement of cash flows.
• D)a cash receipt in the investing activities section on the statement of cash flows.

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Definitions:

Competitive Behaviors

Actions undertaken by individuals or groups aimed at outperforming others to achieve their objectives, often in a competitive environment or platform.

Positive Competitive

Refers to a situation where competition leads to beneficial outcomes for the participants, encouraging improvement and innovation without detrimental effects.

Teamwork Skills

The abilities that enable an individual to work effectively and harmoniously in a group setting towards a common goal.

Competitive Individual

A person who possesses a strong desire to win or be the best in activities, often motivated by achievement and success.