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

question 164

Multiple Choice

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

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

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Definitions:

Refuse

To indicate unwillingness to accept, do, engage with, or consent to something.

Payable After Sight

A payment term indicating that the amount is due a certain number of days after the invoice or bill is presented and seen by the debtor.

Promissory Note

A financial instrument that contains a written promise by one party to pay another a definite sum of money either on demand or at a specified future date.

Contract Of Sale

A legal agreement where the seller agrees to sell and the buyer agrees to buy goods or property under specified terms and conditions.