On a Statement of Cash Flows Prepared Using the Direct

question 121

Multiple Choice

On a statement of cash flows prepared using the direct method,cash received from selling merchandise is considered a ________.

• A) cash inflow from investing activities
• B) cash inflow from operating activities
• C) cash outflow from financing activities
• D) cash outflow from investing activities

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Definitions:

Prospects

Potential customers or clients who have been identified as fitting the target market and who may have an interest or need for a company’s product or service.

Technology

The application of scientific knowledge for practical purposes, especially in industry and the creation of tools, machines, and software to solve problems or improve existing solutions.

Avoid Duplicating

involves taking measures to prevent repetition or copying in processes, information, or products to ensure uniqueness and efficiency.

Corporate Credit Ratings

Assessments made by credit rating agencies that evaluate a corporation's ability to repay its debts.