When Using the Indirect Method to Complete the Cash Flows

question 75

Multiple Choice

When using the indirect method to complete the cash flows from operating activities section of the statement of cash flows, what is the proper disposition of depreciation expense?

• A)Subtract depreciationexpense from net income.
• B)Add depreciationexpense to net income.
• C)Disregard depreciationexpense because it relates to an investing activity.
• D)Disregard depreciationexpense because it is a noncash expense.

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Definitions:

Genes

Genes are units of heredity made up of DNA. They carry the information responsible for the development of organisms.

Carriers

Individuals who have one copy of a gene for a recessive trait and can pass that gene to their offspring, even if they do not exhibit the trait themselves.

Recessive Genes

Genes that are not dominant and can be masked by the presence of dominant genes, requiring two copies, one from each parent, for the trait to be expressed.

Meiosis

The form of cell division in which each pair of chromosomes splits and one member of each pair moves to the new cell. As a result, each new cell has 23 chromosomes.