Using the Direct Method of Preparing the Statement of Cash

question 54

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:

Difference Threshold

The minimum difference in stimulation that a person can detect 50 percent of the time, also known as the just noticeable difference.

Stimulus

Anything in the environment that is detectable by an organism and can elicit a physical or behavioral response.

Receptor Cells

Receptor cells are specialized cells found in the senses (like those for taste, smell, and sight) that respond to specific stimuli by triggering an electrical signal.

Sense Organs

Specialized structures that detect external stimuli, allowing organisms to perceive the world around them.