When the Direct Method Is Used to Determine Operating Cash

question 78

Multiple Choice

When the direct method is used to determine operating cash flows,how is the purchase of equipment for cash shown 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 and financing activity

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Definitions:

Natural Consequences

The outcomes that naturally follow from a person's actions without any external intervention.

Logical Consequences

A discipline strategy that involves allowing the consequences of a child's actions to occur naturally or logically, to teach responsibility.

Abuse

A pattern of behavior where an individual or entity causes harm or distress to another through manipulation, violence, or neglect.

Unrealistic Expectations

Beliefs that are not reasonable or feasible due to being based on false assumptions or ideals.