When Using the Indirect Cash Flow Method, a Decrease in Accounts

question 170

Short Answer

When using the indirect cash flow method, a decrease in accounts receivable or notes receivable must be _________ to net income to arrive at the increase or decrease in cash flows.

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Definitions:

Excise Tax

Taxes applied to specific goods, services, or activities, either as a flat amount per unit or as a percentage of the price.

Direct and Indirect

Terms used to differentiate between costs, taxes, or subsidies that are explicitly linked to the production or sale of a good (direct) and those that are not directly linked but influence economic outcomes (indirect).

Federal Expenditures

Spending by the federal government of a country, including costs for defense, welfare, infrastructure, and other public services.

Income Security

A social welfare concept ensuring individuals have a basic level of income to cover essential needs.