When Using the Indirect Approach, Which of the Following Would

question 91

Multiple Choice

When using the indirect approach, which of the following would lead to a decrease in the cash flows from operations?

• A)An increase in accounts receivable
• B)A decrease in accounts receivable
• C)An increase in accounts payable
• D)An increase in dividends paid

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Definitions:

Market Value

Market value is the amount for which something can be sold in a given market at a particular time.

Redemption Value

The price per share a corporation pays to redeem or retire capital stock.

Preferred Stock

Class of capital stock that has preference to a corporation’s profits and assets.

Book Value

The net value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus accumulated depreciation.