In the Statement of Cash Flows, by Using the Indirect

question 26

Multiple Choice

In the statement of cash flows, by using the indirect method for determining cash flows from operating activities, a decrease in deferred tax liabilities is:

• A) Added to net income.
• B) Subtracted from net income.
• C) Ignored.
• D) Included under financing activities.

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Definitions:

Law Enforcement Lien

A legal claim or hold placed on property by a law enforcement agency due to pending legal action or investigation.

Attachment

The legal process of seizing a debtor's property in order to obtain payment for a debt, or a bond that people or entities have with each other, depending on the context.

Court Control

The authority and measures exercised by a court to manage legal proceedings and ensure compliance with laws and regulations.

Garnishment

An order that satisfies a debt by seizing a debtor’s property that is being held by a third party.