A Corporation Prepares Its Statement of Cash Flows Using the Indirect

question 104

Multiple Choice

A corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2014 fiscal year was $634,000. Depreciation and amortization expense of $60,000 and $30,000 respectively were included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: $$\begin{array} { l r } \text { Decrease in accounts receivable } & \$ 22,000 \\\text { Increase in inventories } & 9,400 \\\text { Increase prepaid expenses } & 8,900 \\\text { Increase in salaries payable } & 10,400 \\\text { Decrease in income taxes payable } & 14,400\end{array}$$ Determine the net cash flow provided (used) by operating activities.

• A) ($692,500)
• B) $692,500
• C) $723,700
• D) ($536,300)
• E) ($723,700)

Identify the significance of true, full, and plain disclosure in the context of securities regulation.

Understand the concept of a proxy and its relevance in corporate governance.

Understand the legal frameworks governing the securities market in Canada, including both provincial and federal regulations.

Recognize the circumstances under which a brokerage firm can have a financial interest in securities it sells.

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Definitions:

WWII

The Second World War, a global conflict that lasted from 1939 to 1945, involving most of the world's nations.

Legal Right

An entitlement derived from a legal system that allows or empowers a person to act in a certain way or requires others to treat the person in a certain way.

Union's Picket Line

A form of protest by union members, often involving walking outside a workplace, to raise awareness and deter others from crossing the line during a strike.

National Emergency

A situation of urgent crisis that poses a significant threat to the health, safety, or well-being of the nation, requiring immediate governmental action.