In Calculating Cash Flows from Operating Activities Using the Indirect

question 172

Multiple Choice

In calculating cash flows from operating activities using the indirect method, an increase in inventories is

• A) added to net income.
• B) deducted from net income.
• C) ignored because it does not affect cash.
• D) not reported on a statement of cash flows.

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Definitions:

Iron-Sulfide Cofactors

Components found in various enzymes and proteins, essential for catalyzing redox reactions, particularly in electron transport chains.

Geothermal Vents

Openings in the Earth's surface from which heated water and gases are discharged, often found in areas with volcanic activity, contributing to diverse ecosystems in the deep sea.

Tidal Flats

Broad, flat areas of land alternately covered and exposed by the rise and fall of tides, rich in biodiversity and important ecologically.