On the Statement of Cash Flows Using the Indirect Method

question 150

Multiple Choice

On the statement of cash flows using the indirect method patent amortization expense will

• A) be added to net income in the operating section.
• B) be deducted from net income in the operating section.
• C) appear as an inflow of cash in the investing section.
• D) appear as an outflow of cash in the investing section.

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Definitions:

Deficiency Motive

A motivation that arises from the lack or deficit of some need or desire, driving behavior to fulfill that need.

Hierarchy

Hierarchy refers to a system or organization in which people or groups are ranked one above the other according to status or authority.

Possession

The act of owning or having control over an object, quality, or situation.

Psychologically Healthy

A state of well-being where an individual recognizes their abilities, can cope with the normal stresses of life, can work productively, and is able to contribute to their community.