On the Statement of Cash Flows Prepared Under the Indirect

question 92

Multiple Choice

On the statement of cash flows prepared under the indirect method,activities that affect stockholders' equity and long-term debt are classified as:

• A)operating activities.
• B)investing activities.
• C)financing activities.
• D)free cash flows.

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Definitions:

Automatic Stabilizers

Strategies and programs intended to stabilize variations in a country's economic activities without direct involvement from government officials or policy makers.

Top Marginal Rate

The highest rate of tax applied to the last and highest portion of income for taxpayers, often affecting those in the highest income brackets.

Federal Personal Income Tax

Is a tax imposed by the federal government on the income of individuals, with the amount owed based on income level, filing status, and available deductions and credits.

Budget Surplus

A budget surplus occurs when a government's revenue exceeds its expenditures during a specific fiscal period.