Cat Nap Corp

question 91

Multiple Choice

Cat Nap Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: How will the change in Accounts Receivable be shown on the statement of cash flows?

• A) addition to net income under the operating activities section
• B) subtraction from net income under the operating activities section
• C) positive cash flow under the financing activities section
• D) negative cash flow under the investing activities section

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Definitions:

Receiver

In communication, the individual or entity that receives, interprets, and possibly responds to a message sent by another.

Encode

The act of converting ideas into a communicable form, such as language or gestures, during the communication process.

Intended Meaning

The meaning or interpretation that a communicator aims to convey to the listener or reader.

Feedback

Communicates how one feels about something another person has done or said.