Presented Below Is the Operating Activities Section of a Statement

question 120

Multiple Choice

Presented below is the operating activities section of a statement of cash flows for 2014: $\begin{array}{lc}\underline {\text { Operatima activities } }\\\text { Cash collected from customers } & \$ 550,000 \\\text { Cash payments for merchandise } & (150,000) \\\text { Cash payments for operating expenses } & \underline {(275,000) } \\\text { Net cash inflow from operating activities } & \underline {\$ 125,000}\end{array}$ Which method of preparing the operating activities section was used?

• A)The direct method.
• B)The indirect method.
• C)Either method.
• D)Cannot be determined without further information.

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Definitions:

Dynamic Systems

A conceptual framework in several scientific fields for understanding how complex behaviors emerge through interactions within and between systems over time.

Metacognitive Systems

Cognitive systems that involve understanding and controlling one's own learning and thought processes.

Take Care

A phrase used to express concern for someone's well-being, often used when parting.

Securely Attached

A term from attachment theory describing individuals who have a positive view of themselves and their relationships, leading to healthier and more stable interactions.