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:

Organizations

Social entities that are goal-directed, are designed as deliberately structured and coordinated activity systems, and are linked to the external environment.

Benefits

Compensation or perks provided to employees in addition to their salary, such as health insurance, retirement plans, and paid time off.

Cultural Intelligence

The capability to function effectively in culturally diverse settings, involving understanding and adapting to different cultural norms and values.

Benefits

Advantages or improvements to one's condition or situation, often provided by employers, insurance, or social programs.