Using the Direct Method of Preparing the Statement of Cash

question 37

Multiple Choice

Using the direct method of preparing the statement of cash flows,which of the following is not an activity generating operating cash flows?

• A)Collections from customers
• B)Payments to suppliers
• C)Payments for income taxes
• D)Payments of dividends

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Definitions:

Clean Air Act

U.S. federal law designed to control air pollution on a national level by setting emissions standards for industries and transportation to ensure a cleaner, healthier environment.

Sulfur Oxide

A chemical compound containing sulfur and oxygen, often produced through the burning of fossil fuels, and contributing to air pollution and acid rain.

Greenhouse Gas Emissions

Greenhouse gas emissions are gases released into the atmosphere that trap heat, contributing to global warming and climate change.

Tailoring Rule

A principle in environmental law that allows for regulations to be adjusted or "tailored" to fit the specific circumstances of different sources or categories of sources, rather than applying a one-size-fits-all approach.