Use the Following Codes to Indicate How the Cash Flow

question 181

Multiple Choice

Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method. (Choices may be used more than once.)
-sold common shares for cash

• A)inflow from operating activity
• B)outflow from operating activity
• C)inflow from investing activity
• D)outflow from investing activity
• E)inflow from financing activity
• F)outflow from financing activity
• G)noncash investing and financing activity
• H)not reported on statement of cash flows

Understand the reasons for discrepancies between bank statements and accounting records.

Comprehend the process and purpose of bank reconciliation.

Identify the role and use of the QBO Check Register in managing banking transactions.

Know the appropriate actions for adjusting the Cash account when bank errors are identified.

---

Definitions:

Asymmetric Information

A situation where one party in a transaction has more or better information than the other party, often leading to market inefficiencies or failures.

Health Care Market

The aggregate of all services, products, and institutions involved in the provision and consumption of health care services.

Low-Fat Food

Food products that have been processed or modified to reduce their fat content, often to appeal to health-conscious consumers.

Health Care Industry

An industry involved in delivering healthcare services, producing medical devices or pharmaceuticals, offering medical insurance, or engaging in activities that support the delivery of healthcare to individuals.