When Using the Indirect Method to Calculate and Report Net

question 58

Multiple Choice

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

• A)Decrease in income taxes payable.
• B)Depreciation expense.
• C)Amortization of intangible assets.
• D)Bad debts expense.
• E)Decrease in merchandise inventory.

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Definitions:

Piaget

A developmental psychologist known for his theory of cognitive development that describes how children's intellectual abilities evolve through stages.

Justice Perspective

A view that emphasizes fairness, equity, and moral rightness in the consideration of how laws and policies affect people.

Care Perspective

An ethical viewpoint highlighting the importance of interpersonal relationships and the welfare of others in moral deliberation.

Kohlberg

A psychologist known for his theory of moral development, which proposes that individuals progress through stages of moral reasoning.