In Preparing a Statement of Cash Flows, Cash Flows from Operating

question 45

Multiple Choice

In preparing a statement of cash flows, cash flows from operating activities

• A)are always equal to accrual accounting income.
• B)are calculated as the difference between revenues and expenses.
• C)can be calculated by appropriately adding to or deducting from net income those items in the income statement that do not affect cash.
• D)can be calculated by appropriately adding to or deducting from net income those items

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Definitions:

Social Pressure

The influence that is exerted by society or a social group on individuals or its members to conform to expected norms and behaviors.

Ethical Awareness

The ability to recognize ethical issues and dilemmas in one's professional and personal life, understanding both the implications and possible responses to such challenges.

Competition

The rivalry among businesses or individuals for resources, markets, and customers, aiming to achieve superior performance.

Cut Corners

To undertake actions in the easiest, quickest, or cheapest way, often by skipping necessary steps or violating rules.