Brighton,Inc

question 30

Multiple Choice

Brighton,Inc.uses the indirect method to determine its net cash flows from operating activities.During the course of the year,the company's Accounts Receivable increased by $10,000 and its Accounts Payable decreased by $5,000.If these are the only two adjustments required to convert net income to net cash provided by operating activities,the combined effect will be a(n) :

• A) subtraction of $5,000.
• B) addition of $5,000.
• C) addition of $15,000.
• D) subtraction of $15,000.

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Definitions:

Tangentiality

Tangentiality is a communication disorder frequently observed in psychiatric interviews where the individual's responses to questions may be unrelated or indirectly related, veering off the topic.

Neologisms

Newly coined words, expressions, or usages that may be in the process of entering common usage, especially in specific fields or societies.

Derailment

A thought disorder characterized by a person's speech and thinking patterns being disorganized or unrelated, making it difficult to follow the individual's train of thought.

Lack of Abstractness

Pertains to the inability or difficulty in understanding and applying abstract concepts and ideas.