What Is the First Step in Calculating Cash Flows from Operations

question 117

Multiple Choice

What is the first step in calculating cash flows from operations when the indirect method is used?

• A)Find net income on the income statement.
• B)Calculate the net change in the cash account.
• C)Add the change in accounts receivable to sales revenue.
• D)Identify the balance sheet accounts that relate to operating activities.

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Definitions:

PTSD

Post-Traumatic Stress Disorder; a mental health condition triggered by experiencing or witnessing a terrifying event.

Agoraphobia

A type of anxiety disorder characterized by an irrational fear of being in open spaces or in situations where escape might be difficult.

Social Anxiety Disorder

A mental health condition where an individual experiences intense fear of social situations, leading to avoidance and significant distress.

Acute Distress Disorder

A mental health condition characterized by the development of severe anxiety, dissociation, and other symptoms occurring within a month after exposure to a traumatic event.