(Appendix) When Preparing a Schedule for the Calculation of Cash

question 23

Multiple Choice

(Appendix) When preparing a schedule for the calculation of cash generated from operating activities under the direct method, an increase in Prepaid Insurance is

• A) subtracted from cost of goods sold.
• B) added to cost of goods sold.
• C) added to operating expenses.
• D) subtracted from operating expenses.

---

Definitions:

Real Number

A numerical representation of a quantity on a continuous spectrum, encompassing all rational and irrational numbers.

Radical Expression

An algebraic expression that contains a square root, cube root, or any other higher root.

Evaluate

The process of determining the value of a mathematical expression.

Calculator

A device or software used for performing arithmetic operations and calculations.