Avatar Company Uses the Indirect Method to Prepare Its Statement

question 109

True/False

Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet:
Note: Net income for the year was $49,000.
Dividends of $10,000 will be shown as a positive cash flow in the financing section of the statement of cash flows.

---

Definitions:

Organizational Support

Refers to the ways in which a company aids its employees, through resources, tools, and emotional backing.

Optics Technician

A professional specialized in assembling, testing, and maintaining optical instruments and systems, such as lenses, microscopes, and telescopes.

Emergency Loan Program

A financial assistance scheme designed to provide quick funding in urgent situations to those in need.

Incivility

Rude or unsociable speech or behavior that disrupts the harmony and respect among individuals in a workplace or social setting.