If a Company Uses the Indirect Method to Report Cash

question 9

Multiple Choice

If a company uses the indirect method to report cash flows, it

• A) subtracts any increase in its accrued pension cost from net income.
• B) subtracts any increase in accrued pension cost as an investing activity.
• C) adds any increase in its accrued pension cost to net income.
• D) adds any increase in accrued pension cost as a financing activity.

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Definitions:

Hostile People

Individuals who display aggression, antagonism, or are confrontational in their interactions with others.

Stressors

are elements or conditions that cause stress, leading individuals to experience pressure, tension, or discomfort.

Potent Source

A highly influential or powerful factor that has a significant impact on outcomes or situations.

American Psychological Association

A leading scientific and professional organization representing psychology in the United States, dedicated to advancing the creation, communication, and application of psychological knowledge to benefit society and improve people's lives.