In a Statement of Cash Flows in Which Operating Activities

question 21

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.The two gains are not cash flows.Proceeds from the sale of land are reported as a component of investing activities.

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Definitions:

Immaturity

A lack of development, whether in biological, emotional, or psychological realms, often resulting in childlike behavior in adults.

Psychoanalytic Theory

A theory of personality organization and the dynamics of personality development that guides psychoanalysis, developed by Sigmund Freud, focusing on unconscious motives and conflicts.

Superego

The part of the personality in Freudian psychoanalysis that is responsible for upholding moral standards and ideals acquired from parents and society, often in conflict with individual desires.

Conservative

A philosophical or political stance that emphasizes traditional values, stability, and resistance to change.