When Using the Indirect Method to Calculate and Report the Net

question 168

Multiple Choice

When using the indirect method to calculate and report the net cash provided or used by operating activities,net income is adjusted for all but which of the following?

• A)Gains and losses from nonoperating items.
• B)Revenues and expenses that did not provide or use cash.
• C)Changes in noncurrent assets and noncurrent liabilities.
• D)Changes in current liabilities related to operating activities.
• E)Depreciation and amortization expense.

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Definitions:

Avulsion

A medical term for the tearing away of a body part or tissue, either accidentally or surgically, often requiring immediate treatment to repair or reattach.

Comminuted

Describing a fracture in which a bone is broken into several pieces.

Depressed

A state of low mood and aversion to activity that can affect a person's thoughts, behavior, feelings, and sense of well-being.

Proximal Tip

The part of a structure that is nearest to the center of the body or to the point of attachment.