Use the Following Codes to Indicate How the Cash Flow

question 2

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.)
-issued long term mortgage to acquire land and a building

• 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

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Definitions:

Corporate Connections

Refers to the relationships and affiliations between businesses and other entities, often influencing decisions and policies.

Political System

An established system of governance within a country, including its rules, institutions, and political processes.

Resources

Resources are assets or supplies that can be drawn upon by individuals or organizations to function effectively and achieve objectives.

Direct Democracy

A form of democracy in which people decide on policy initiatives directly, without intermediaries or representatives.