Using the Indirect Method, Cash Flows from Operating Activities Would

question 31

Multiple Choice

Using the indirect method, cash flows from operating activities would be increased by which of the following?

• A) Gain on sale of investments
• B) Increase in prepaid expenses
• C) Decrease in accounts payable
• D) Decrease in accounts receivable

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Definitions:

Regulatory Controls

Legal or governmental standards and rules established to control how businesses operate, often for the sake of public interest.

Sole Proprietorships

Sole Proprietorships are business entities owned and operated by one individual, where there is no legal distinction between the owner and the business entity.