For Each of the Following Activities That May Take Place

question 171

Multiple Choice

For each of the following activities that may take place during the accounting period, indicate the effect (a-g) on the statement of cash flows prepared using the indirect method. Choices may be selected as the answer for more than one question.
-Payment of dividends

• A)Increase cash from operating activities
• B)Decrease cash from operating activities
• C)Increase cash from investing activities
• D)Decrease cash from investing activities
• E)Increase cash from financing activities
• F)Decrease cash from financing activities
• G)Noncash investing and financing supplement

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Definitions:

Kelly's Covariation Theory

A psychological theory that explains how people attribute causation based on the consistency, distinctiveness, and consensus of an observed behavior.

Causal Attributions

The process by which individuals infer the causes of their own and others' behaviors, actions, and events.

Distinctiveness

The quality of being uniquely different from others in some respect, often used to describe features that distinguish one person, group, or thing from another.

Causal Hypothesis

A statement predicting a precise relationship between two or more variables, where changes in one variable cause changes in another.