The Comparative Balance Sheets of Midnite Corp

question 106

Multiple Choice

The comparative balance sheets of Midnite Corp.for 2018 and 2017 indicate that short-term trade notes receivable increased from $5,000 in 2016 to $75,000 in 2018.How will this change be reported on Midnite's statement of cash flows,if Midnite uses the indirect method?

• A)It will be included in the amount of cash and cash equivalents at the end of 2018.
• B)It will be reported as a deduction from net income in the Operating Activities section.
• C)It will be reported as a cash outflow in the Investing Activities section.
• D)It will be added to net income in the Operating Activities section.

---

Definitions:

Three Dimensions

Pertains to objects that have depth, width, and height, contributing to their solid form.

Finke's Principle

A theoretical proposition related to the creative process, emphasizing the role of imagined images and scenarios in generating innovative solutions or products.

Transformational Equivalence

The ability to recognize that an object or problem can be represented in different ways while retaining its core properties or meaning.

Empirical Evidence

Information acquired by observation or experimentation that serves as the basis for knowledge or justification.