On a Statement of Cash Flows Using the Indirect Format,amortization

question 58

Multiple Choice

On a statement of cash flows using the indirect format,amortization of the discount on notes receivable is:

• A)deducted from net income in the operating activities section
• B)included as an inflow in the financing activities section
• C)added to net income in the operating activities section
• D)ignored,since it is a noncash expenditure

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Definitions:

Pledges Receivable

Amounts promised to an organization by donors that are recognized as assets before the cash is actually received.

Government Grants

Funds given by the government to individuals, organizations, or governments for specific purposes.

Labor Reports

Documents or publications detailing employment statistics, workforce conditions, and other data relevant to labor markets, often released by government agencies or other organizations.

Stock Market Reports

Financial analyses and summaries that provide information on the performance of stock markets and individual stocks.