Under the Indirect Method of Preparing a Statement of Cash

question 107

Multiple Choice

Under the indirect method of preparing a statement of cash flows,cash disbursed for the acquisition of a capital asset is:

• A) added in the investing activities section
• B) added in the financing activities section
• C) subtracted in the operating activities section
• D) subtracted in the investing activities section

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Definitions:

Oil of Cloves

An essential oil derived from clove trees, used medicinally for its pain-relieving properties, especially in dentistry, and for its aromatic qualities.

Contingency View

The contingency view is a theory that suggests the best way to organize or lead an organization varies depending on the internal and external situation or context.

Tone-shock Relationship

Refers to a conditioning paradigm in psychological experiments where a tone is paired with a mild shock, leading to an anticipatory response to the tone alone.

Safety Signal

A cue or sign that indicates the absence of threat or danger, often reducing anxiety or fear.