In Preparing a Statement of Cash Flows Using the Indirect

question 172

Multiple Choice

In preparing a statement of cash flows using the indirect method,the Depreciation Expense ________.

• A) is added back as an adjustment to Net Income in the operating activities section
• B) is shown as a negative cash flow in the investing activities section
• C) is added back to Purchases of Plant Assets under investing activities
• D) is shown as a negative cash flow under operating activities

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Definitions:

Self-fulfilling Prophecy

A prediction that causes itself to become true due to the behavior it generates in believers.

Discriminatory Manner

Acting in a way that makes an unfair distinction in treating people, especially on the grounds of race, age, or sex.

Prejudicial Remarks

Statements or comments that are unfair or biased, often based on stereotypes, leading to the discrimination of individuals or groups.

Discrimination

The unfair or biased treatment of various groups of individuals, frequently rooted in differences such as racial background, age, gender, or physical abilities.