When Preparing a Statement of Cash Flows Using the Indirect

question 131

Multiple Choice

When preparing a statement of cash flows using the indirect method,each of the following should be classified as an operating cash flow except:

• A)An increase in accounts receivable.
• B)A decrease in accounts payable.
• C)Proceeds from the disposal of a long-term asset with no gain or loss.
• D)An increase in prepaid expenses.
• E)A decrease in accrued expenses payable.

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Definitions:

Positive Checks

Factors that increase mortality rates, such as disease, starvation, and war, traditionally discussed in the context of population control theories.

Thomas Malthus

An English economist and demographer best known for his theory that population growth will outpace agricultural production, leading to widespread poverty and societal collapse unless checked by factors like famine, disease, or war.

Population Growth

The increase in the number of individuals in a population, measured by natural growth (births minus deaths) and net migration.

Communist Ideology

A socio-political ideology advocating for a classless society in which all property and means of production are communally owned, aiming to eliminate social inequalities.