The Comparative Balance Sheets of Midnite Corp

question 17

Multiple Choice

The comparative balance sheets of Midnite Corp.for 2015 and 2014 indicate that short-term trade notes receivable increased from $5,000 in 2014 to $75,000 in 2015.How will this change be reported on Midnite's statement of cash flows, if Midnite uses the indirect method?

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

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Definitions:

Silken Dragline

A silken dragline refers to the continuous strand of silk produced by spiders and some insects as a lifeline or for web construction.

Maturity Level

A measure of the growth, development, or experience of an individual or organization in specific contexts.

Reproductive Segments

Portions of organisms specifically adapted for reproduction, often seen in segmented animals like worms.

Tapeworms

Parasitic flatworms that inhabit the digestive tracts of vertebrates, absorbing nutrients from the host's gut.