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:

Subjective Feelings

Refers to personal experiences of emotions that are unique to the individual and may not be observable by others.

Attractiveness

The quality of being appealing or pleasing in appearance, personality, or characteristics.

Case Study

An in-depth investigation of an individual subject.

Systematic Observation

A methodical approach to observing subjects and gathering data using structured observation tools and protocols to minimize bias.