On a Statement of Cash Flows Prepared with the Indirect

question 2

Multiple Choice

On a statement of cash flows prepared with the indirect method,investing activities do NOT include:

• A)sale of investments that are not cash equivalents.
• B)receipt of interest on investments.
• C)collection of note receivable.
• D)lending money to an employee.

Recognize various elements of terms of sale and their significance.

Understand inventory management techniques, including the Economic Order Quantity (EOQ) model.

Describe the importance of financial statements in evaluating credit applications.

Identify the effect of economic conditions on a firm’s credit evaluation.

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Definitions:

Disjuncts

In logic and grammar, parts of a disjunctive proposition that express alternatives, where the truth of any one implies the falsehood of the other(s).

Conjuncts

Components of a compound statement formed by the word "and" indicating all elements must be true.

Disjunction

A logical operation that results in true if at least one of the operands is true.

Conditional

A statement or proposition that asserts that one thing is true if another thing is true, typically formulated as "If P, then Q."