In the Statement of Cash Flows, Depreciation and Amortization Expense

question 14

Multiple Choice

In the statement of cash flows, depreciation and amortization expense is added back to net income because:

• A)these expenses do not affect cash, but were subtracted in the determination of net income.
• B)these expenses affect investing activities, not operating activities.
• C)the cash disbursements for these accrued expenses will be made in a future period.
• D)these expenses are recognized for accounting purposes, but they do not represent economic costs.

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Definitions:

National Union

A labor union organization that represents the interests of workers across an entire country, often consisting of many local branches or sectors.

Democratic Methods

Approaches or processes that emphasize participation, inclusiveness, and equal opportunities for decision-making.

Autocratic Methods

Management styles characterized by individual control over all decisions and little input from group members, often leading to a centralized decision-making process.

Paternalistic Methods

Management practices that involve overseeing workers in a fatherly manner, where decision-making is centralized and based on the assumption that employers know what is best for their employees.