Using the Direct Method of Preparing the Statement of Cash

question 38

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)Payments to employees
• B)Payments to suppliers
• C)Repayment of debt
• D)Payments for operating expenses

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Definitions:

Regional Shopping Center

A retail location consisting of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores.

Strip Mall

A retail location consisting of a cluster of neighborhood stores to serve people who are within a 5- to 10-minute drive.

Central Business District

The oldest retail setting, usually located in the community’s downtown area.

Old-Town District

An area within a city known for its historical architecture and often sought after for cultural, tourism, and commercial activities.