In Order to Derive a Cash Flow Statement, Starting with the Income

question 15

Multiple Choice

In order to derive a cash flow statement, starting with the income statement the owner must add back in _____.

• A) depreciation expense
• B) increase in accounts receivable
• C) increases in inventory
• D) decrease in accounts payable

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Definitions:

Echoing

The repetition or imitation of sounds, words, or phrases, often used as a communication technique or learning method.

Clarifying

The process of making a statement or situation less confused and more comprehensible.

Genuineness

The quality of being authentic, sincere, and honest in one's feelings and actions.

Modeling

The process of learning behaviors by observing and imitating others.