When Preparing the Statement of Cash Flows by the Indirect

question 17

Multiple Choice

When preparing the statement of cash flows by the indirect method,if current liabilities decrease,the difference is:

• A)added to net income.
• B)added to investments.
• C)deducted from net income.
• D)subtracted from investments.

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Definitions:

Intelligence Scores

Quantitative measures obtained through standardized testing designed to assess human cognitive abilities and potential.

Decreased

Refers to being reduced in size, quantity, degree, or intensity.

Torrance Test

A series of standardized tests designed to measure creative thinking ability in individuals.

Creative Thinking

The ability to think outside the box and generate new, original, and innovative ideas or solutions.