Match the Letter with Each Item Below to Indicate How

question 65

Essay

Match the letter with each item below to indicate how net income is adjusted when using the indirect method to determine net cash flow from operating activities.
A - Add item to net income
S - Subtract item from net income
N - No adjustment necessary
_______ decrease in property,plant and equipment
_______ increase in accounts receivable
_______ decrease in inventory
_______ decrease in prepaid expenses
_______ increase in accounts payable
_______ decrease in accrued liabilities
_______ decrease in income tax payable
_______ increase in dividends payable
_______ gain on sales of property,plant and equipment
_______ depreciation

Grasp the significance of diversification in reducing portfolio risk and understand the distinction between diversifiable and non-diversifiable risks.

Know how the security market line represents the relationship between risk (beta) and expected return and how it aids in determining if an investment is correctly priced.

Understand how to compute the expected return on a portfolio and the role of portfolio weights.

Recognize the importance of the correlation between stocks in a portfolio and its effect on portfolio variance.

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Definitions:

Direct Coping

A method of dealing with stress by tackling problems head-on and attempting to solve them directly.

Indirect Coping

Strategies that involve dealing with stress and problems in a less direct manner, such as through avoidance, distraction, or seeking support from others.

Defensive Coping

Strategies employed to protect oneself from psychological harm by minimizing stress or conflict.

Aggressive

Behavior characterized by assertiveness, hostility, or an intention to cause harm to others.