When Using the Indirect Method for Preparing the Statement of Cash

question 100

Multiple Choice

When using the indirect method for preparing the statement of cash flows, all of the following will appear in the operating activities section except:

• A) Increase in deferred tax.
• B) Depreciation expense on leased assets.
• C) Interest expense.
• D) An increase in long-term liabilities.

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Definitions:

Lactic Acid

A compound generated within muscles during rigorous physical activity, frequently linked to feelings of muscle tiredness and discomfort.

Glucose

A simple sugar that serves as a primary source of energy for the body's cells.

Muscular Endurance

The ability of a muscle, or group of muscles, to perform repetitive contractions over a period of time without becoming fatigued.

Aerobic Activities

Physical exercises that increase the heart rate and promote increased oxygen consumption over a sustained period.