The Net Income Reported on the Income Statement for the Current

question 52

Multiple Choice

The net income reported on the income statement for the current year was $40,000.Depreciation Expense recorded on fixed assets was $21,000.What is the net cash flow from operations that would appear on a cash flow statement using the indirect method?

• A)$40,000
• B)$61,000
• C)$21,000
• D)$19,000

---

Definitions:

Government Guiding

The involvement or direction by government agencies in shaping and influencing the economic policies and practices within a country.

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services at all levels within a society.

Individual Decision Making

The process by which individuals make choices or judgments from among different options or possibilities, often influenced by personal preferences, economic factors, or available information.

Principle

A fundamental truth or proposition that serves as the foundation for a system of belief, behavior or reasoning.