Using the Indirect Method, Which of the Following Would Not

question 64

Multiple Choice

Using the indirect method, which of the following would not be needed to determine net cash provided by operating activities?

• A)depreciation expense
• B)change in accounts receivable
• C)payment of cash dividends
• D)change in prepaid expenses

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Definitions:

Offset Agreement

An agreement wherein a supplier agrees to buy products from the party to whom it is selling in order to win the buyer as a customer and “offset” the buyer’s production costs.

Import Tariffs

Taxes imposed by a government on goods and services imported from other countries, often used to protect domestic industries or generate revenue.

Communication Challenges

The obstacles or issues faced during the process of conveying, receiving, and understanding messages among individuals or entities.

Sensitive Knowledge

Information that is critical or private in nature, often requiring careful handling and protection due to its significance or potential impact.