Under the Indirect Method of Preparing the Statement of Cash

question 8

Multiple Choice

Under the indirect method of preparing the statement of cash flows,addbacks to net income include all of the following except:

• A) depreciation expense
• B) deferred tax expense
• C) asset write-downs
• D) share-based compensation

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Definitions:

Imports

Goods or services brought into a country from abroad for sale.

Equilibrium

A situation in a market where demand equals supply, and there is no tendency for the quantities supplied and demanded to change.

Market

The institution through which buyers and sellers interact and engage in exchange.

S And D

Stands for Supply and Demand, which are the forces that determine the price of goods and services in a marketplace.