On a Statement of Cash Flows Prepared with the Indirect

question 2

Multiple Choice

On a statement of cash flows prepared with the indirect method,investing activities do NOT include:

• A)sale of investments that are not cash equivalents.
• B)receipt of interest on investments.
• C)collection of note receivable.
• D)lending money to an employee.

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Definitions:

Electronic Means

The use of electronic devices or systems, such as computers and the Internet, for communication or executing transactions.

Questionable Enforceability

Questionable enforceability refers to the uncertain legal status of a contract or clause, where its compliance with law or ability to be upheld in court is doubtful.

Writing Requirements

Legal stipulations that certain agreements, contracts, or transactions must be documented in writing to be legally enforceable.

E-commerce

The exchange of goods and services or the transfer of money or information, mainly through the internet or other electronic networks.