Asked by
Graisy Greener
on Nov 15, 2024Verified
Under the direct method of the statement of cash flows, a sale of merchandise inventory for cash is a(n) :
A) managing activity.
B) investing activity.
C) financing activity.
D) operating activity.
Direct Method
A way of reporting cash flows from operating activities in the cash flow statement by listing major classes of gross cash receipts and payments.
Operating Activity
Activities that relate directly to the business’s primary operations, such as selling goods and providing services, not including investing or financing activities.
- Identification and categorization of activities (operating, investing, and financing) in the statement of cash flows.
Verified Answer
TB
Learning Objectives
- Identification and categorization of activities (operating, investing, and financing) in the statement of cash flows.