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:

Amygdala

A part of the limbic system that apparently facilitates stereotypical aggressive responses.

Aggressive Reactions

Responses characterized by anger or hostility, often as a result of provocation or frustration.

Commitment

A pledge or promise to do something, often involving dedication to a cause, project, relationship, or goal.