When Computing the Net Cash Provided by Operating Activities Using

question 40

Multiple Choice

When computing the net cash provided by operating activities using the indirect method on the statement of cash flows, which item below would NOT be added to net income?

• A) Depreciation.
• B) Loss on the sale of an asset.
• C) Decrease in accounts payable.
• D) Decrease in prepaid expenses.

Comprehend the principles of differential analysis and its advantages in decision-making.

Recognize the criteria for measuring objectives in quantitative terms in decision-making.

Distinguish between objectives, constraints, and opportunity costs in conflict resolution during decision-making.

Identify the characteristics of relevant information, including the impact on future costs or revenues and the importance of timeliness.

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Definitions:

License

A permit from an authority to own or use something, do a particular thing, or carry on a trade.

Certain Professions

Specific occupations that require specialized education, skills, or certifications, often regulated by professional bodies or laws.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

State Involved

Refers to the participation or intervention of governmental authorities in a particular matter or issue.