In Preparing Cash Flows Provided by Operating Activities Using the Indirect

question 2

Multiple Choice

In preparing cash flows provided by operating activities using the indirect method, which of the following items is deducted from net income?

• A)Non-cash expenses such as amortization
• B)Increases in current asset balances
• C)Losses on investing and financing transactions
• D)Increases in current liability balances

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Definitions:

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for action by accelerating the heart rate, constricting blood vessels, and raising blood pressure.

State of Arousal

A condition of heightened physiological and psychological activity, including alertness and physical preparedness.

Blood Pressure

The pressure exerted by circulating blood upon the walls of blood vessels, a critical indicator of cardiovascular health.

Neural Pathways

These are series of connected neurons that transmit electrical and chemical signals throughout the brain and nervous system.