What Is the First Step in Calculating Cash Flows from Operations

question 117

Multiple Choice

What is the first step in calculating cash flows from operations when the indirect method is used?

• A)Find net income on the income statement.
• B)Calculate the net change in the cash account.
• C)Add the change in accounts receivable to sales revenue.
• D)Identify the balance sheet accounts that relate to operating activities.

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Definitions:

Phonemes

The smallest units of sound in a language that distinguish one word from another.

Morphemes

The smallest units of language that have meaning or grammatical function, such as prefixes, suffixes, and root words.

Semantics

The meaning or the study of meaning derived from morphemes, words, and sentences.

Phonemes

The smallest units of sound in a language that can distinguish one word from another.