On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include
A) receipts from the sale of investments
B) amortization of premium on bonds payable
C) payments for cash dividends
D) receipts from the issuance of common stock

Question

Quizplus · Accepted Answer

The cash flows from operating activities section of the statement of cash flows prepared by the indirect method includes transactions that affect net income, which includes non-cash expenses such as amortization of premium on bonds payable. Receipts from the sale of investments (A) and receipts from the issuance of common stock (D) would be classified as cash flows from investing and financing activities, respectively. Payments for cash dividends (C) would be classified as cash flows from financing activities.

On the Statement of Cash Flows Prepared by the Indirect