In a Statement of Cash Flows in Which Operating Activities

question 84

Multiple Choice

In a statement of cash flows in which operating activities are reported by the direct method, which of the following would increase reported cash flows from operating activities?

• A) Gain on sale of equipment.
• B) Interest revenue.
• C) Gain on early extinguishment of bonds.
• D) Proceeds from sale of land.

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Definitions:

Assigned Rights

The transfer of rights or interests in a contractual agreement from one party to another.

Mortgage Payments

Regular payments made towards a loan used to purchase property, typically consisting of both principal and interest components.

Official-Looking

Something that appears to be formal, authoritative, or sanctioned by an official body, even if it is not.

Written Notice

A formal notification provided in written form, used to inform parties about decisions, changes, or legal obligations.