All of the Following Are Categories in the Operating Activities

question 90

Multiple Choice

All of the following are categories in the operating activities section using the direct method in the statement of cash flows except

• A)changes in amortization
• B)changes in accounts receivable
• C)changes in inventory
• D)changes in accounts payable

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Definitions:

Legal Problems

Issues or disputes that arise requiring resolution through legal means, often involving litigation or regulatory compliance challenges.

Misused Assets

Resources or assets that are not being utilized in an optimal or intended manner, leading to inefficiencies or loss within an organization.

Merchandise Credits

A form of store credit issued to a customer, typically from a returned item, for future purchases at that retailer.

Actionable Misrepresentation

False or misleading statements that lead to a legal cause of action because they result in harm or losses.