When Rounding Negative Integers, the Rules Are

question 13

Multiple Choice

When rounding negative integers, the rules are:

• A) negative integers should not rounded
• B) the same as for rounding whole numbers
• C) first convert the integer to a positive whole number
• D) the same as for multiplying negative integers

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Definitions:

Accounts Receivable

Represents money owed to a company by its customers for goods or services delivered but not yet paid for.

Indirect Method

A way of calculating cash flows for operational activities by starting with net income and adjusting for non-cash transactions.

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from revenues.

Direct Method

A method of preparing the cash flow statement where actual cash flow information from the company’s operations segment is used directly.