In Calculating Net Cash Provided by Operating Activities Using the Indirect

question 23

Multiple Choice

In calculating net cash provided by operating activities using the indirect method, an increase in prepaid expenses during a period is

• A)deducted from net income.
• B)added to net income.
• C)ignored because it does not affect net income.
• D)ignored because it does not affect expenses.

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Definitions:

Business Communication

The sharing of information between people within and outside an organization that is performed for the commercial benefit of the organization.

Scope

The extent or range of view, outlook, application, operation, or effectiveness of an object or concept.

Business Message

Any form of communication used within a professional setting to convey information, decisions, or requests.

Informational Cue

Signals or hints within a communication that provide additional, often nonverbal, information to the receiver.