Under the Indirect Method,depreciation Expense Is Added to Net Income

question 41

Multiple Choice

Under the indirect method,depreciation expense is added to net income to arrive at cash flow from operating activities.Depreciation is handled this way because

• A)it is an inflow of cash
• B)it should be subtracted in arriving at net income
• C)it is deducted in arriving at net income but does not reduce cash
• D)it should be subtracted in arriving at cash from investing activities

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Definitions:

Dopamine

A neurotransmitter that affects the ability to perceive pleasure, voluntary movement, and learning and memory; it is involved in Parkinson’s disease and appears to play a role in schizophrenia.

Norepinephrine

A neurotransmitter whose action is similar to that of the hormone epinephrine and that may play a role in depression.

Successive Approximations

In operant conditioning, a series of behaviors that gradually become more similar to a target behavior.

Target Behavior

A specific behavior that is selected for change or intervention in a behavior modification program.