When Preparing the Operating Section of the Statement of Cash

question 100

Multiple Choice

When preparing the operating section of the statement of cash flows using the indirect method, which of the following items are added to net income?

• A) decrease in accounts payable
• B) unrealized gains on trading securities
• C) loss on sale of equipment
• D) increase in merchandise inventory

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Definitions:

Large Vehicles

Vehicles of considerable size, often used to refer to trucks, buses, or heavy equipment.

Solid Rotors

Brake rotors without internal ventilation channels, often used in less demanding applications than vented rotors.

Composite Fibers

Materials made from two or more different substances, offering enhanced strength, durability, or other properties for various applications.

Fixed Calipers

Brake calipers that are stationary and house multiple pistons on each side of the rotor, providing more even brake pad wear and better performance.