When Using the Indirect Method to Prepare the Operating Section

question 93

Multiple Choice

When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is added to net income to compute cash flows from operating activities?

• A) gain on sale of long-term asset
• B) decrease in deferred tax liability
• C) bond discount amortization
• D) All of the above

---

Definitions:

High-Performance Work Systems

Organizational structures that enhance effectiveness by integrating employee involvement, technology, and innovative HR practices.

Virtual Organizations

Virtual Organizations are businesses or entities that operate primarily online or through electronic collaboration, utilizing digital platforms to manage their processes and workforce.

Communicate Emotion

The process of expressing or conveying feelings and emotional states to others.

Organizational Identity

The shared beliefs and values that define what an organization stands for and how it perceives itself.