Assuming the Indirect Method for Preparing the Statement of Cash

question 187

Multiple Choice

Assuming the indirect method for preparing the statement of cash flows is used, indicate whether these items should be added to net income (A) , deducted from net income (D) , or not be reported in the operating section of the statement under the indirect method (NR) .
-Exchange of a note for equipment

• A)Added (A)
• B)Deducted (D)
• C)Not reported (NR)

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Definitions:

Choroid

Portion of the vascular tunic associated with the sclera of the eye.

Sclera

The white, outer layer of the eyeball, providing protection and maintaining the eye's shape.

Retina

Nervous tunic of the eyeball.

Lacrimal Gland

Tear gland located in the superolateral corner of the orbit.