The Comparative Balance Sheets for Flagler Co

question 145

Multiple Choice

The comparative balance sheets for Flagler Co.for 2015 and 2014 indicate that accounts receivable decreased during 2015.Flagler uses the indirect method of preparing the operating activities section of its statement of cash flows.How will the decrease in accounts receivable be reported on the statement of cash flows?

• A)It will be included in the amount of cash and cash equivalents at the end of 2015.
• B)It will be deducted from net income in the operating activities section.
• C)It will be added to net income in the operating activities section.
• D)It will be reported as a cash outflow in the investing activities section.

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Definitions:

Kyoto Protocol

An international treaty that commits its parties to reduce greenhouse gas emissions, based on the scientific consensus that global warming is occurring and that human-made CO2 emissions are driving it.

Greenhouse Gas

Gases in Earth's atmosphere that trap heat, including carbon dioxide, methane, and nitrous oxide, significantly contributing to global warming and climate change.

Chlorofluorocarbons

Synthetic organic compounds once widely used in aerosols and refrigeration, known to deplete the ozone layer and contribute to global warming.

Air Conditioners

Devices designed to regulate the temperature and humidity within a space, contributing to human comfort and preservation of goods.