When Using the Indirect Method to Prepare the Operating Section

question 16

Multiple Choice

When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is added to net income to compute cash provided by\used by operating activities?

• A)Increase in accounts receivable.
• B)Gain on sale of land.
• C)Amortization of patent.
• D)All of the above are added to net income to arrive at cash flow from operating activities.

Understand the impact of reduced order cycle times on supply chain management.

Understand the balance between security and efficient global commerce flow.

Understand the membership and basic principles of NAFTA.

Recognize the distribution of the world population among countries.

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