A Statement of Cash Flows Prepared Under the INDIRECT Method

question 42

Multiple Choice

A statement of cash flows prepared under the INDIRECT method adds and subtracts certain items to the base number. Decreases in unearned revenues would be shown as

• A) a deduction from net income.
• B) an addition to net income.
• C) a deduction from sales.
• D) an addition to sales.

---

Definitions:

Distributive Justice

concerns the fair allocation of resources and rewards among individuals in a society or group, based on principles of equity.

Conflict

A situation or process in which individuals, groups, or organizations have disagreements, disputes, or incompatibilities, often leading to a confrontation.

Bilateral Threat

A situation where two parties perceive each other as potential threats, often leading to escalated tensions or conflict.

Unilateral Threat

This term describes a situation where one party threatens to take action independent of others' preferences or actions.