When Using the Indirect Method to Complete the Cash Flows

question 2

Multiple Choice

When using the indirect method to complete the cash flows from operating activities section,what is the proper treatment of depreciation expense?

• A) Subtract depreciation expense from net income.
• B) Add depreciation expense to net income.
• C) Disregard depreciation expense because it relates to an investing activity.
• D) Disregard depreciation expense because it is a non-cashnoncash expense.

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Definitions:

Seminal Vesicles

Glands located near the prostate that produce a significant portion of the fluid constituting semen.

Urine

A liquid by-product of metabolism in humans and many animals, expelled from the body.

Semen

A fluid containing sperm and other secretions from the male reproductive system, involved in reproduction.

Urethra

The tube that carries urine from the bladder to the outside of the body, and in males, also serves as a conduit for semen.