Use the Following Codes to Indicate How the Cash Flow

question 122

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.)
-purchased truck 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

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Definitions:

Matrix Organization

A matrix organization is a company structure that creates teams by combining functional and project-based departments, aiming to improve communication, flexibility, and dynamic project handling.

Committee Organization

Organizational structure that places authority and responsibility jointly in the hands of a group of individuals rather than a single manager.

Line-and-staff Organization

An organizational structure that combines direct, line authority with specialized, staff support functions and personnel.

Line Organization

A direct and clear line of command within an organization, from the top management to the lowest rank, characterized by direct supervision and clear responsibilities.