When the Indirect Method Is Used to Determine Operating Cash

question 58

Multiple Choice

When the indirect method is used to determine operating cash flows,how are the declaration and payment of cash dividends shown on the statement of cash flows?

• A) as operating activities
• B) as investing activities
• C) as financing activities
• D) as noncash investing and financing activity

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Definitions:

Organizational Resources

Assets, capabilities, and inputs that an organization utilizes to operate and achieve its objectives, including human, financial, and physical resources.

Environmental Opportunities

Circumstances in the external environment that a business can exploit to its advantage.

Organizational Weaknesses

Aspects of an organization that reduce its ability to reach its goals, including deficiencies in resources, processes, or capabilities.

Mission Statement

A concise statement that defines the purpose and guiding principles of an organization, informing its goals and strategic direction.