In Order to Determine Cash Flows from Operations, the Owner

question 112

Multiple Choice

In order to determine cash flows from operations, the owner must add back the depreciation expense to the net profits and then

• A) subtract any decrease in accounts payable.
• B) add any increase in accounts receivable.
• C) add any increase in inventory.
• D) subtract any decrease in inventory.

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Definitions:

Intimate Space

A spatial zone up to two feet, about an arm’s length, from a person’s body that is reserved for close friends and loved ones.

Endearing

Having qualities that make someone or something lovable or attract positive feelings.

Decoding Process

Receipt and translation of information by the receiver.

Conversion

The process of turning prospects into actual customers by influencing them to take a desired action, such as making a purchase.