When the Direct Method Is Used to Determine the Cash

question 143

Multiple Choice

When the direct method is used to determine the cash flows from operating activities,other operating expenses are converted into cash outflows by:

• A)adding changes in prepaid expenses and accrued liabilities to other expenses.
• B)subtracting increases in prepaid expenses and subtracting decreases in accrued liabilities from other expenses.
• C)adding increases in prepaid expenses and adding decreases in accrued liabilities to other expenses.
• D)subtracting changes in prepaid expenses and accrued liabilities from other expenses.

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Definitions:

Conception

The moment at which a sperm cell fertilizes an ovum, marking the beginning of a pregnancy.

Genetic Disorders

Diseases or conditions caused by an abnormality in an individual's DNA, which can be inherited or occur due to mutations.

Carriers

Individuals who possess one copy of a gene mutation that can lead to a genetic disorder if passed on to offspring, but do not typically show symptoms of the disorder themselves.

Birth Process

Is the series of events that lead to the delivery of a baby, beginning with labor and culminating in childbirth.