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

question 40

Multiple Choice

When using the indirect method to determine operating cash flows,how is the decrease in accounts payable 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:

Segment Information

Financial data that has been broken down into smaller parts, such as divisions or subsidiaries of a corporation, to analyze performance of different areas of the company separately.

Reportable Segment

A distinguishable component of a business for which separate financial information is available and regularly reviewed by the entity’s decision makers.

Operating Profits

Income earned from a firm's core business operations, excluding deductions of interest and taxes.

IFRS 8

Refers to the International Financial Reporting Standard dealing with operating segments, requiring particular ways of financial reporting by segment to enhance transparency and comparability.