When Preparing a Statement of Cash Flows Using the Direct

question 20

Multiple Choice

When preparing a statement of cash flows using the direct method, accrual of payroll expense is:

• A)Reported as an operating activity.
• B)Reported as an investing activity.
• C)Reported as a financing activity.
• D)None of these is correct.Accruing expenses does not affect cash flows.

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Definitions:

Menstruation

The regular discharge of blood and mucosal tissue from the inner lining of the uterus through the vagina, part of the menstrual cycle.

Follicle

A small secretory cavity or gland, but in the context of biology, often refers to the sac in the ovary that contains the oocyte.

Menstrual Synchrony

The purported phenomenon where women who live together or are in close proximity experience their menstrual cycles aligning over time.

Menorrhagia

A medical condition characterized by abnormally heavy or prolonged menstrual bleeding.