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:

Independence

The state or quality of being self-reliant and free from outside control in making decisions or in choosing one's actions.

Nostalgia

A sentimental longing for the past, which can profoundly influence consumer preferences and buying behavior.

Individual Consumers

Refer to single persons who purchase goods and services for personal use and not for manufacture or resale.

Scale

refers to the relative size or extent of something, or a set of numbers, objects, or events placed in a order or gradation.