If a Company Has Both an Inflow and an Outflow

question 132

Multiple Choice

If a company has both an inflow and an outflow of cash related to property, plant, and equipment,

• A) the two cash effects can be netted and presented as one item in the investing activities section of the statement of cash flows.
• B) the cash inflow and the cash outflow should be reported separately in the investing activities section of the statement of cash flows.
• C) the two cash effects can be netted and presented as one item in the financing activities section of the statement of cash flows.
• D) the cash inflow and the cash outflow should be reported in the financing activities section of the statement of cash flows.

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Definitions:

ICD-10-PCS

The International Classification of Diseases, 10th Revision, Procedure Coding System; a coding system used to track healthcare procedures.

Instructional Notes

Guidelines or comments provided to aid understanding or to give direction on a particular topic or procedure.

ICD-10-CM General Note

Instructional guidelines associated with the International Classification of Diseases, Tenth Revision, Clinical Modification, used in medical coding and reporting.

Sequencing Instruction

The process of organizing instructions or events in a specific order for clarity and understanding.