When Preparing the Statement of Cash Flows by the Indirect

question 124

Multiple Choice

When preparing the Statement of Cash Flows by the indirect method, if current liabilities increase, the difference is:

• A)added to net income.
• B)added to investing activities.
• C)deducted from net income.
• D)deducted from investing activities.

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Definitions:

Deductive Reasoning

Drawing conclusions based on, going from the general to the specific.

Inductive Reasoning

Generalizing from specific concepts to broad principles.

Specious Logic

Arguments that seem plausible at first glance but are actually misleading or false upon closer examination.

Technical Problem

A challenge or issue related to the application of scientific or specialized knowledge, particularly in practical tasks or engineering.