A Company Uses the Indirect Method to Prepare the Statement

question 156

Multiple Choice

A company uses the indirect method to prepare the statement of cash flows. How will amortization be presented on the statement?

• A)Amortization expense will be added to net income in the financing activities section.
• B)Amortization expense will be subtracted from net income in the operating section.
• C)Amortization expense will be added to net income in the operating activities section.
• D)Amortization expense will be added to net income in the investing activities section.

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Definitions:

Myelin Sheets

Protective coverings around nerve fibers in the brain, spinal cord, and peripheral nerves, made of myelin, which help in the rapid transmission of electrical signals.

Sensory Information

Data that is perceived by the senses (sight, hearing, smell, taste, touch) and transmitted to the brain for processing.

Axon Hillock

The cone-shaped area of a neuron where the axon originates and where action potentials are initiated.

Telodendria

Fine, thread-like extensions of axons and dendrites at the terminus of neurons, thought to play a role in the transmission of electrical signals to adjacent neurons.