Avatar Company Uses the Indirect Method to Prepare Its Statement

question 81

Multiple Choice

Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information: Which of the following statements is accurate regarding the statement of cash flows?

• A)$34,000 will be shown as a positive cash flow in the investing section.
• B)$40,000 will be shown as a positive cash flow in the financing section.
• C)$34,000 will be shown as a positive cash flow in the financing section.
• D)$40,000 will be shown as a negative cash flow in the investing section.

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Definitions:

Expectancies

Beliefs or predictions about the outcomes of certain behaviors or events.

Opportunities

Circumstances that present chances for advancement, progress, or benefit in various contexts such as career, personal growth, or investment.

Convergent Validation

The process of assembling diverse pieces of information that converge on a common conclusion.

Interjudge Agreement

The degree of consistency or accord in the assessments or ratings of different judges or observers.