When Preparing a Statement of Cash Flows on the Indirect

question 117

Multiple Choice

When preparing a statement of cash flows on the indirect method, each of the following should be classified as an operating activity cash flow except:

• A) An increase in accounts receivable.
• B) A decrease in accounts payable.
• C) A gain from disposal of a long-term asset
• D) An increase in prepaid expenses.
• E) A decrease in accrued expenses payable.

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Definitions:

Positive Norms

Standards or expectations within a group that promote positive behaviors and interactions, contributing to a constructive and supportive environment.

Role Model

An individual who serves as an example to others by demonstrating desirable behaviors and attitudes, often inspiring others to emulate them.

Rewarding

Providing benefits, recognition, or compensation as an acknowledgment of effort, achievement, or desirable behavior.

Maintenance Activities

Support the emotional life of the team as an ongoing social system.