Question

Expenses paid in advance at the end of the year are ______ in ______ activities while preparing the Cash Flow Statement.

Options

• added; operating

• subtracted; operating

• added; investing

• subtracted; investing

Answer 1

Expenses paid in advance at the end of the year are added in operating activities while preparing the Cash Flow Statement.

Explanation:

While preparing the Cash Flow Statement, expenses paid in advance at the end of the year are added to operational activities.