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

question 7

Multiple Choice

On a statement of cash flows using the indirect format,a decrease in unearned revenue is:

• A)deducted from net income in the operating activities section
• B)included as an outflow 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:

Encryption

The process of converting information or data into a code, especially to prevent unauthorized access.

Electronic Documents

Digitally formatted documents, including texts, images, or data, stored and transmitted via electronic devices and software.

Signature Equivalent

A method or form that serves the same legal purpose as a handwritten signature, such as a digital signature.

Jurisdiction

Jurisdiction refers to the official power to make legal decisions and judgments, often within a specific geographical area or over certain types of cases.