Under the Indirect Method of Preparing a Statement of Cash

question 70

Multiple Choice

Under the indirect method of preparing a statement of cash flows, cash disbursed for the acquisition of a plant asset is:

• A)subtracted in the operating activities section.
• B)subtracted in the investing activities section.
• C)added in the investing activities section.
• D)added in the financing activities section.

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Definitions:

Central Route Persuasion

A technique for convincing others that requires thoroughly understanding the message's content, resulting in enduring changes in attitudes.

Foot-In-The-Door Phenomenon

The tendency for people who have first agreed to a small request to comply later with a larger request.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort or mental conflict due to holding contradictory beliefs, values, or attitudes, especially when prompted to act against one of those beliefs.

Situational Attribution

The process of attributing an individual's behavior to external factors in the environment rather than to internal personality traits.