When Using the Indirect Method to Determine Operating Cash Flows,how

question 91

Multiple Choice

When using the indirect method to determine operating cash flows,how is the purchase of equipment for cash shown on the Statement of Cash Flows?

• A)Operating activity
• B)Investing activity
• C)Financing activity
• D)Noncash investing and financing activity
• E)Not reported on the statement of cash flows

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Definitions:

Trade Deficit

A measure of international trade in which a country's imports exceed its exports.

Net Exports

A country's economic output's net impact from international trade, calculated as the difference between its total exports and total imports.

Net Exports

The value of a country's total exports minus its total imports, indicating whether a country is in a trade surplus or deficit.

Imports

Goods and services brought into a country from abroad for sale.