When Using the Indirect Method to Calculate and Report the Net

question 168

Multiple Choice

When using the indirect method to calculate and report the net cash provided or used by operating activities,net income is adjusted for all but which of the following?

• A)Gains and losses from nonoperating items.
• B)Revenues and expenses that did not provide or use cash.
• C)Changes in noncurrent assets and noncurrent liabilities.
• D)Changes in current liabilities related to operating activities.
• E)Depreciation and amortization expense.

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Definitions:

Employee Satisfaction

A measure of how happy or content employees are with their jobs and work environment.

Nonverbal

Communication without the use of spoken language, involving gestures, body language, facial expressions, and other visual cues.

Gestures

Physical movements of the body, especially hands and arms, used to express ideas or feelings.

Posture

The way one holds their body when standing or sitting, which can communicate nonverbal cues about confidence, openness, or submissiveness.