Which of the Following Statements Are False When Using the Indirect

question 58

Multiple Choice

Which of the following statements are false when using the indirect method?

• A) A loss on the sale of equipment is added to net income in calculating cash provided by operating activities.
• B) An increase in accounts receivable during a period is deducted from net income in calculating cash provided by operating activities.
• C) An increase in accounts payable during a period is added to net income in calculating cash provided by operating activities.
• D) A decrease in accumulated depreciation during a period is added to net income in calculating cash provided by operating activities.

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Definitions:

Unfair Persuasion

A legal concept in contract law where one party significantly influences another to enter into an agreement against their free will or without full understanding.

Concealment

The act of hiding or withholding information that is material to a decision or agreement, often considered fraudulent in legal contexts.

Active Steps

Measures or actions taken with deliberate effort and intention toward achieving a specific goal.

Fraudulent Misrepresentation

Involves knowingly making a false statement with the intent to deceive, leading another party to enter into a contract.