If a Company Is Using the Indirect Method to Prepare

question 106

Multiple Choice

If a company is using the indirect method to prepare the statement of cash flows,identify where an increase in the accounts receivable account should be reported:

• A)An increase in cash flows from operating activities
• B)An increase in cash flows from investing activities
• C)A decrease in cash flows from operating activities
• D)A decrease in cash flows from investing activities
• E)An increase in cash flows from financing activities

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Definitions:

Galton

Refers to Francis Galton, a 19th-century polymath who contributed to the fields of statistics, psychology, and anthropology and is known for his work in eugenics and heredity.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing their patterns of thought, feelings, and behaviors.

Person-Situation Interaction

The concept that behavior is a result of the interaction between a person's internal characteristics and external environmental factors.

Personality-Behavior Interaction

The dynamic interplay between an individual's personality traits and their behavior in various situations.