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.

---

Definitions:

Free Association

A psychoanalytic technique that involves encouraging individuals to say aloud whatever comes to mind, no matter how trivial or embarrassing.

Dream Interpretation

The process of assigning meaning to dreams, often seen as a way to understand subconscious thoughts or feelings.

Transference

A client’s relating to the psychoanalyst in ways that reproduce or relive important relationships in the client’s life.

Catharsis

A psychological release through which one is relieved from strong or repressed emotions.