All of the Following Statements Related to Preparation of the Statement

question 100

Multiple Choice

All of the following statements related to preparation of the statement of cash flows are true except:

• A)A company may report cash flows from operating activities using either the direct or indirect method.
• B)Interest expense may be reported under operating or financing based on which one results in better cash flows.
• C)Cash dividends paid to shareholders are classified as a financing activity.
• D)Purchase of an intangible asset is classified as an investing activity.
• E)Repaying the principal of notes payable is classified as a financing activity.

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Definitions:

Costs

Costs refer to the monetary value required to obtain goods, services, or assets, including the expenses associated with production, maintenance, or acquisition.

Effective Project Leader

A person who successfully guides a project team towards its objectives, ensuring timely completion and meeting expectations.

Time Management

The practice of organizing and planning how to divide one's time between specific activities to work more efficiently.

Smaller Projects

Projects with limited scope and duration, often characterized by fewer resources, lower costs, and less complexity compared to larger initiatives.