Which of the Following Is a Cash Inflow from an Operating

question 118

Multiple Choice

Which of the following is a cash inflow from an operating activity on a statement of cash flows prepared using the direct method?

• A) sold treasury stock for cash
• B) issued common stock
• C) received interest revenue in cash
• D) borrowed money on a long-term note

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Definitions:

Net Method

is an accounting method for recording purchases where the purchase is recorded at net of any trade discounts received.

Profit Test

A financial analysis conducted to determine the profitability or financial viability of a project, business, or product.

Reportable Segments

Identifiable business units within a corporation that are significantly engaging in business activities, generating revenues, and incurring expenses.

Identifiable Segments

Refer to portions or sections of a business that can be separately distinguished for analysis or accounting purposes, often based on their operating activities, geography, or products.