Changes in Current Assets and Current Liabilities Are Reported on the Statement

question 23

Multiple Choice

Changes in current assets and current liabilities are reported on the statement of cash flows, indirect method, in the

• A) operating activities
• B) financing activities
• C) investing activities
• D) separate schedule of noncash activities

---

Definitions:

Waive Rights

The act of voluntarily relinquishing or giving up a known right or privilege.

Past Practice

is an established custom or way of doing things that, over time, has been accepted and expected by both employers and employees within an organization.

Arbitrators

Neutral third parties who resolve disputes between individuals or organizations, making decisions that can be binding or non-binding.

Intent of the Parties

The actual aim or purpose that parties to an agreement had at the time they entered into it, usually determined from the language of the contract and circumstances.