When the Indirect Method Is Used to Determine Operating Cash

question 43

Multiple Choice

When the indirect method is used to determine operating cash flows,how is the receipt of cash from the sale of long-term investments treated on the statement of cash flows?

• A) as an operating activity
• B) as an investing activity
• C) as a financing activity
• D) as a noncash investing or financing activity

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Definitions:

Distribution

The way in which something is shared out among a group or spread over an area, or the set of all possible values of a variable and how frequently they occur.

P-value

The probability of observing a test result at least as extreme as the one observed, under the assumption that the null hypothesis is true.

Kruskal-Wallis Test

The Kruskal-Wallis test is a non-parametric method for testing whether samples originate from the same distribution, used when the assumptions of one-way ANOVA are not met.

Hypotheses Testing

A statistical method that uses sample data to evaluate a hypothesis about a population parameter, typically involving a test statistic to determine the likelihood of the hypothesis being true.