In a Statement of Cash Flows in Which Operating Activities

question 43

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:

Higher Level Needs

Advanced human needs in the hierarchy, typically associated with self-actualization and personal development, beyond basic survival or security needs.

Management

The process of planning, organizing, leading, and controlling resources to achieve organizational goals.

Efficient And Effective

Achieving maximum productivity with minimal wasted effort or expense while also producing the desired outcome.

Vision

A forward-looking statement or idea that outlines what an organization or individual aims to achieve in the future.