Under the Direct Method of Preparing the Statement of Cash

question 119

Multiple Choice

Under the direct method of preparing the statement of cash flows,all of the following would be reported under operating activities EXCEPT:

• A)collections from customers.
• B)interest received on notes receivable.
• C)dividends received on investments in stock.
• D)cash proceeds on sale of long-term investments.

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Definitions:

Employee Stock Ownership Programs

are employee benefit plans that provide workers with an ownership interest in the company, often aiming to align the interests of employees and shareholders.

Retirement Plans

Financial strategies that individuals use to allocate savings and investments for income during their retirement years.

Top-Level Executives

Senior managers holding pivotal positions in a company, responsible for strategic decisions and overall management.

Social Zone

An area or space that fosters social interaction among individuals, often within a workplace or public setting.