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

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Definitions:

Renal Failure

A medical condition in which the kidneys lose the ability to filter waste and excess fluids from the blood.

Urethral Obstruction

A blockage in the urethra, the tube that carries urine from the bladder out of the body, which can cause difficulty urinating or a complete inability to urinate.

Anuria

A medical condition characterized by the failure of the kidneys to produce urine.

Hematuria

The presence of blood in urine, which can indicate urinary tract infections, kidney stones, or more serious conditions like cancer.