In Calculating Net Cash Provided by Operating Activities Using the Indirect

question 189

Multiple Choice

In calculating net cash provided by operating activities using the indirect method an increase in prepaid expenses during a period is

• A) deducted from net income.
• B) added to net income.
• C) ignored because it does not affect income.
• D) ignored because it does not affect expenses.

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Definitions:

Contractures

A permanent tightening of muscles, tendons, ligaments, or skin that restricts normal movement, often developing after prolonged immobilization or inactivity.

Plantar Flexion

The movement of bending the foot downward towards the sole, decreasing the angle between the foot and the leg.

Lower Legs

The part of the legs below the knee, including the calves and ankles, an area essential for mobility and support.

Osteoarthritis

A degenerative joint disease characterized by the breakdown of cartilage and underlying bone, leading to pain and stiffness, especially in the hips, knees, and thumb joints.