Which of the Following Statements About Calculation of Cash Flows

question 177

Multiple Choice

Which of the following statements about calculation of cash flows from operating activities under the indirect method is correct?

• A)When the indirect method is used,changes in current liabilities are subtracted while changes in current assets are added to convert net income to net cash flow from operating activities.
• B)When the indirect method is used,depreciation expense is added to net income as a step in the process of calculating net cash flow provided by operating activities.
• C)When the indirect method is used,changes in long-term assets are added to convert net income to net cash flow provided by operating activities.
• D)When the indirect method is used,changes in long-term liabilities are subtracted to convert net income to net cash flow provided by operating activities.

---

Definitions:

Empathic

The ability to understand and share the feelings of another, deeply connecting with others' emotions.

Flu

An infectious disease caused by the influenza virus, characterized by symptoms like fever, sore throat, muscle pain, and cough.

Disrupt Sleep

Activities or factors that interfere with the ability to fall asleep or maintain sleep, affecting sleep quality or duration.

Organizing Tasks

The process of arranging or structuring tasks and activities in an efficient, systematic way to achieve specific goals or outcomes.