Use the Following Codes to Indicate How the Cash Flow

question 33

Multiple Choice

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

• A)operating activity-add to net income
• B)operating activity-deduct from net income
• 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:

Mortgage Market

The market where lenders and borrowers come together to negotiate and arrange home loans, encompassing both primary and secondary market activities.

Marginal Tax Bracket

The tax rate applicable to the last unit of currency earned, influencing financial decisions by showing the additional tax cost or benefit of income changes.

Municipal Bond

A debt security issued by a state, municipality, or county to finance its capital expenditures, usually tax-exempt from federal taxes and sometimes from state taxes.

Corporate Bond

A debt security issued by a corporation to raise funding, promising to pay back the principal amount along with interest.