Which of the Following Would Appear in Both the Operating

question 11

Multiple Choice

Which of the following would appear in both the operating activities section of the direct method format and the reconciliation of earnings to net operating cash flow format?

• A) Sale of cash equivalents at a gain
• B) Sale of cash equivalents at cost
• C) Dividends received on equity method investments
• D) Collection of an account receivable previously written off

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Definitions:

Development of Alliances

The strategic process of creating formal relationships or partnerships between organizations to achieve mutual goals or to gain competitive advantages.

Specific Environment

The part of the environment that is directly relevant to an organization, including customers, suppliers, competitors, and government regulations.

Government Agencies

Organizations established by a government to administer legislation and implement public policy in specific areas.

Legal-Political Conditions

The framework of laws and political climate within which individuals, organizations, and businesses operate.