In Calculating Net Cash Provided by Operating Activities Using the Indirect

question 111

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 profit.
• B) added to profit.
• C) ignored because it does not affect profit.
• D) ignored because it does not affect expenses.

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Definitions:

Prejudice

A preconceived opinion or bias against individuals or groups without sufficient knowledge, often leading to discrimination and intolerance.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Scapegoat Theory

A social-psychological concept that suggests individuals or groups are blamed and punished for problems or issues, often unfairly, to alleviate feelings of guilt or responsibility in others.

Racist Ideologies

Systems of beliefs that assert the superiority of one race over another, often used to justify unequal treatment or discrimination.