Starting with Net Income and Adjusting It for Items That

question 75

Multiple Choice

Starting with net income and adjusting it for items that affected reported net income but which did not affect cash when calculating operating cash flows is called the

• A)direct method.
• B)indirect method.
• C)working capital method.
• D)cost-benefit method.

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Definitions:

Leads

Conductors or wires that provide electrical connections between the components of an electrical circuit.

Squirrel-Cage Motor

A type of induction motor characterized by a rotor designed as a series of short-circuited rings connected by bars, resembling a squirrel cage.

Current Draw

The amount of electrical current pulled from a source by a load or device in operation, often measured in amperes.

Squirrel-Cage Rotor

A type of rotor found in induction motors characterized by its cylindrical shape with aluminum or copper bars running the length of the cylinder and connected at both ends by rings, resembling a squirrel cage.