In Preparing Cash Flows Provided by Operating Activities Using the Indirect

question 76

Multiple Choice

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

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

---

Definitions:

Ethical Relativism

The belief that morality is relative to the norms of one's culture, meaning that what is considered moral in one society may be considered immoral in another.

Morality

Principles concerning the distinction between right and wrong or good and bad behavior.

Natural Law

The philosophy proposing that certain rights or values are inherent by virtue of human nature and universally cognizable through human reason.

Market Value Ethics

Ethical considerations and guidelines regarding how goods and services are valued and exchanged in the market, emphasizing fairness, transparency, and honesty in business practices.