In a Statement of Cash Flows Using the Direct Method,which

question 33

Multiple Choice

In a statement of cash flows using the direct method,which of the following would increase reported cash flows from operating activities?

• A) Dividends received from investments
• B) Gain on sale of equipment
• C) Gain on sale of a business segment
• D) Sale of treasury stock

Recognize different forms of quantity controls and their purposes in various markets.

Understand the concept of demand price and supply price in the context of quota limits.

Analyze the impact of quotas on substitute goods and their market prices.

Understand the economic theory behind the effects of removing or imposing quantity controls.

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Definitions:

Par Value

The nominal or face value of a stock or bond, representing the minimum amount the security is stated to be worth.

Common Stock Account

An equity account on a company's balance sheet representing the total amount of money invested by common stockholders plus the retained earnings of the company.

Common Stock Dividend

A portion of a company's earnings distributed to common shareholders, typically in the form of cash or additional shares.

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, reinvestment in the business, or to pay debt, rather than being paid out as dividends.