Under the Direct Method of Preparing the Statement of Cash

question 66

Multiple Choice

Under the direct method of preparing the statement of cash flows, cash payments from operating activities do NOT include:

• A)payment of dividends.
• B)payments to suppliers.
• C)payments to employees.
• D)payments of income tax.

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Definitions:

Fair Values

The market value of selling an asset or the outlay for a liability transfer in a negotiated agreement among trading participants at the time of estimation.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of the identifiable net assets of the acquired business.

Appendix B

Generally, this term would refer to additional supporting information found at the end of a document, book, or publication, but without a specific context, it is too broad for a unique definition.

Disclosure

The action of making new or secret information known.