When the Indirect Method Is Used to Determine Net Cash

question 130

Multiple Choice

When the indirect method is used to determine net cash provided by (used in) operating activities,subtracting an increase in Accounts Receivable from net income eliminates the effect of recording revenue that:

• A)increased net income,but did not impact cash.
• B)decreased net income,but did not impact cash.
• C)increased net income and increased cash flow.
• D)decreased net income and decreased cash flow.

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Definitions:

Photoautotrophs

Organisms that carry out photosynthesis to acquire energy, using sunlight, carbon dioxide, and water to produce oxygen and glucose.

Inorganic Carbons

Carbon compounds that do not contain carbon-hydrogen bonds, typically excluding those found in living organisms or their remains.

Nitrogen-Fixing Bacteria

Bacteria capable of converting atmospheric nitrogen into ammonia, making nitrogen available to plants for growth.

T. Aquaticus

A species of bacterium that thrives in hot environments and is a source of Taq polymerase, a key enzyme in PCR (polymerase chain reaction) technology.