For Each of the Following Activities That May Take Place

question 116

Multiple Choice

For each of the following activities that may take place during the accounting period, indicate the effect (a-g) on the statement of cash flows prepared using the indirect method. Choices may be selected as the answer for more than one question.
-Sale of land

• A)Increase cash from operating activities
• B)Decrease cash from operating activities
• C)Increase cash from investing activities
• D)Decrease cash from investing activities
• E)Increase cash from financing activities
• F)Decrease cash from financing activities
• G)Noncash investing and financing supplement

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Definitions:

Two Months

A period of approximately sixty days or the duration covering two consecutive calendar months.

Mail And Telephone Order Rule

A Federal Trade Commission regulation requiring businesses to ship orders within the timeframe stated in their ads or within 30 days if no time is specified.

Option Notice

A formal communication specifying a choice or requirement to take an action, especially in contracts or agreements.

Dangerous Per Se Rule

A legal doctrine that an act, by its nature, is inherently dangerous and can lead to liability without the need to prove negligence.