In Calculating Cash Flows from Operating Activities Using the Indirect

question 117

Multiple Choice

In calculating cash flows from operating activities using the indirect method, an increase in accounts payable is

• A) added to net income.
• B) deducted from net income.
• C) ignored because it does not affect cash.
• D) not reported on a statement of cash flows.

---

Definitions:

Coniferous Forest

A terrestrial biome characterized by evergreen trees with needles or scales, primarily found in northern latitudes or higher altitudes.

Steppe

A vast, treeless plain characterized by its grassy cover, often found in southeastern Europe or Siberia, which supports a variety of animals adapted to open and semi-arid environments.

Taiga

also known as the boreal forest, is a biome characterized by coniferous forests spanning across northern parts of North America, Europe, and Asia.

Taproot

The main central root from which other roots sprout laterally, typically found in many plants and trees, providing anchorage and nutrient absorption.