On a Statement of Cash Flows Using the Indirect Method

question 78

Multiple Choice

On a statement of cash flows using the indirect method, depreciation expense will

• A)be added to profit in the operating activities section.
• B)be deducted from profit in the operating activities section.
• C)appear a cash receipt in the investing activities section.
• D)be ignored.

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Definitions:

Cash Register Receipts

Documents that record sales transactions and the amount of cash received, typically issued at the point of sale.

Department Supervisors

Individuals responsible for overseeing the operations of a specific department within an organization, managing employees and resources.

Restrictive Endorsement

A limitation placed on the use of a check or other negotiable instrument, specifying the conditions under which it can be transferred.

Blank Endorsement

A signature on a financial instrument, such as a check, that specifies no particular payee, allowing any holder of the instrument to cash or deposit it.