The Appropriate Section in the Statement of Cash Flows for Reporting

question 104

Multiple Choice

The appropriate section in the statement of cash flows for reporting the cash payment of wages is:

• A) Operating activities.
• B) Financing activities.
• C) Investing activities.
• D) Schedule of noncash investing or financing activity.
• E) None of these. This is not reported on the statement of cash flows.

---

Definitions:

Right of Recovery

The legal right to seek compensation or restitution for a loss, damage, or injury suffered.

Surviving Corporation

In a merger or consolidation, the corporation that continues to exist, absorbing the business of the other entity.

Chose in Action

represents a personal right to property not yet in the holder's possession but recoverable by legal action.

Acquiring Corporation

A company that purchases or acquires another company, either in part or entirely.