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When Using the Indirect Method to Determine Operating Cash Flows

question 160

Multiple Choice

When using the indirect method to determine operating cash flows, how is an increase in accounts receivable during the year shown on the Statement of Cash Flows?


Definitions:

Conjugate Acid

The species formed when a base gains a proton (H+), effectively showing the protonated form of the base.

Conjugate Base

The species that remains after a Bronsted-Lowry acid has donated a proton, capable of accepting a proton to reform the acid.

Acid/Base Reaction

A chemical reaction that involves the transfer of protons (H+) between a base (proton acceptor) and an acid (proton donor).

Basicity

A measure of the ability of a substance to accept hydrogen ions (protons), often used to describe the strength of bases.

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