Which of the Following Would Be Reported in the Operating

question 1

Multiple Choice

Which of the following would be reported in the operating, investing, or financing sections of the statement of cash flows prepared under the indirect method?

• A)Declaration of an unpaid cash dividend
• B)Acquisition of a factory warehouse by issuing long-term debt
• C)Gain on the sale of cash equivalents
• D)Write-off of an uncollectible account receivable
• E)None of these answers is correct.

---

Definitions:

IFRS

IFRS stands for International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is globally recognized for preparing financial statements.

GAAP

Widely recognized accounting norms and criteria in the U.S. that guide financial statements.

Property, Plant, Equipment

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the short term.

Accumulated Depreciation

Accumulated depreciation is the total amount of depreciation expense that has been recorded against a company's assets over time.