The Comparative Balance Sheets for Flagler Co

question 145

Multiple Choice

The comparative balance sheets for Flagler Co.for 2015 and 2014 indicate that accounts receivable decreased during 2015.Flagler uses the indirect method of preparing the operating activities section of its statement of cash flows.How will the decrease in accounts receivable be reported on the statement of cash flows?

• A)It will be included in the amount of cash and cash equivalents at the end of 2015.
• B)It will be deducted from net income in the operating activities section.
• C)It will be added to net income in the operating activities section.
• D)It will be reported as a cash outflow in the investing activities section.

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Definitions:

Perceptions

The way in which something is regarded, understood, or interpreted, influenced by individual experience and biases.

Evaluative Tendency

The predisposition of a person to judge something as good or bad in a consistent manner over time.

Specific Object

An identifiable entity distinguished by particular characteristics.

Attitudes Function

The role that attitudes play in influencing how we respond to people, objects, and situations.