Which of the Following Items Would Be a Way to Manipulate

question 21

Multiple Choice

Which of the following items would be a way to manipulate the cash flow from operating activities amount on the statement of cash flows?

• A)Adding depreciation back to net income to determine cash flow from operating activities.
• B)Including interest expense and tax expense in the calculation of cash flow from operating activities.
• C)Recording an item that should be recorded as an operating activity as an investing activity.
• D)The cash flow statement cannot be manipulated.

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Definitions:

Reporting Relationships

The formal lines of authority and communication within an organization, indicating who reports to whom.

Communication Channels

The mediums through which information is transmitted from one entity to another, including verbal, non-verbal, written, and electronic means.

Divisional Structure

An organization structure that groups together people working on the same product, in the same area, with similar customers, or on the same processes.

Vice Presidents

Senior executives below the president level, often overseeing specific business units, functions, or operations within an organization.