Which of the Following Statements Is CORRECT

question 134

Multiple Choice

Which of the following statements is CORRECT?

• A) In the statement of cash flows,a decrease in accounts receivable is subtracted from net income in the operating activities section.
• B) Dividends do not show up in the statement of cash flows because dividends are considered to be a financing activity,not an operating activity.
• C) In the statement of cash flows,a decrease in accounts payable is subtracted from net income in the operating activities section.
• D) In the statement of cash flows,depreciation is subtracted from net income in the operating activities section.
• E) In the statement of cash flows,a decrease in inventories is subtracted from net income in the operating activities section.

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Definitions:

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected or related.

Assent

Agreement or approval, typically given willingly by a person who possesses the capacity to form intent.

Unilateral Mistake

An error made by only one party in a contract that does not necessarily invalidate the agreement, but may be grounds for its rescission if certain conditions are met.

Invalidate

To make something legally void or ineffective, often by showing it was improperly formed or does not comply with necessary legal requirements.