When the Direct Method Is Used to Determine the Cash

question 143

Multiple Choice

When the direct method is used to determine the cash flows from operating activities,other operating expenses are converted into cash outflows by:

• A)adding changes in prepaid expenses and accrued liabilities to other expenses.
• B)subtracting increases in prepaid expenses and subtracting decreases in accrued liabilities from other expenses.
• C)adding increases in prepaid expenses and adding decreases in accrued liabilities to other expenses.
• D)subtracting changes in prepaid expenses and accrued liabilities from other expenses.

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Definitions:

Consolidating Memories

The process by which memories become stable in the brain; a phase where short-term memories are transformed into long-term memories.

Experiential System

A cognitive processing system that operates based on experiences, emotions, and intuitions rather than analytical reasoning.

Cognitive System

A cognitive system refers to the mental processes and structures involved in perception, thinking, reasoning, and understanding.

Implicit Attitude

Unconscious or automatic attitudes or feelings towards objects, people, or situations, which influence responses and behaviors.