When Using the Indirect Method to Calculate and Report the Net

question 33

Multiple Choice

When using the indirect method to calculate and report the net cash provided or used by operating activities, net income is adjusted for all but which of the following?

• A) Depreciation and amortization expense.
• B) Changes in current liabilities related to operating activities.
• C) Gains and losses from nonoperating items.
• D) Revenues and expenses that did not provide or use cash.
• E) Changes in noncurrent assets and noncurrent liabilities.

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Definitions:

Systematic Desensitization

A type of behavioral therapy used to gradually reduce phobic reactions and anxiety through counterconditioning.

Cognitive Therapy

A form of psychotherapy that focuses on changing unhelpful or unhealthy thought patterns that contribute to emotional distress and mental health issues.

Depressed Clients

Individuals seeking help for depression, a mood disorder characterized by persistently low mood and a feeling of sadness and loss of interest.

Irrational Thinking

A thought process where the individual fails to reasonably consider the full scope of information or logical analysis in reaching a decision or conclusion.