Which of the Following Would Not Affect the Operating Activities

question 15

Multiple Choice

Which of the following would not affect the operating activities section of the statement of cash flows, using the indirect method?

• A) Decrease in merchandise inventory
• B) Payment on a note payable
• C) Decrease in unearned rent
• D) Depreciation expense

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Definitions:

Order For Relief

A court order in bankruptcy proceedings that allows for the commencement of bankruptcy processes and relief for the debtor.

Involuntary Bankruptcy

A legal process initiated by creditors rather than the debtor, where a court is asked to declare a debtor bankrupt and liquidate assets to pay off debt.

Bankruptcy Trustee

An individual appointed by the court to oversee and manage the estate of a debtor in a bankruptcy proceeding, ensuring the fair distribution of assets to creditors.

Debtor

An individual or company that owes money to another entity.