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

question 33

Multiple Choice

When using the indirect method to determine operating cash flows,how would the retirement of bonds payable at their maturity date be 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:

Price Ceilings

Regulatory limits set on the price that can be charged for certain goods or services, intended to protect consumers from excessive rates.

Price Floors

A minimum price, set by law or agreement, below which a commodity cannot legally be sold, often used in agriculture to stabilize market prices.

Taxes

Compulsory financial charges imposed by a government on individuals, businesses, or transactions to fund public spending.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, engaged in professional, commercial, or industrial activities.