Which of the Following Events Do NOT Affect Cash Flows

question 50

Multiple Choice

Which of the following events do NOT affect cash flows from operating activities? Assume the direct method is used.

• A) cash sale of merchandise inventory
• B) cash purchase of equipment
• C) cash purchase of inventory
• D) cash paid for employees' wages

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Definitions:

Organizational Markets

Markets that involve the sale of goods or services to other businesses, government bodies, or institutions, rather than to individual consumers.

Examples

Specific instances or cases that are used to illustrate a principle, method, or situation.

Reverse Auction

An auction format in which sellers bid to offer goods or services at the lowest price to a buyer, reversing the traditional auction model.

Would-Be Suppliers

Potential providers of goods or services that are considering entering a specific market or supplying a particular customer or company.