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.

---

Definitions:

Free-Radical Chlorination

A chemical reaction that involves the substitution of hydrogen atoms in alkanes with chlorine atoms via a free-radical mechanism.

Ethane

A colorless, odorless gas that is the simplest alkane, with the formula C2H6, used as a fuel.

Resonance Form

Structures that depict individual contributors to the overall delocalization of electrons within a molecule.

Free Radical

Highly reactive atoms or molecules with unpaired electrons, capable of engaging in chemical reactions that can lead to polymerization or degradation.