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.

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Definitions:

Melanin

The pigment that gives color to the skin, hair, and eyes, providing protection against UV radiation damage.

Subcutaneous Tissue

The layer of tissue directly under the skin, consisting of fat and connective tissues that insulate and protect the body.

Integumentary System

The organ system that protects the body from external damage, consisting of the skin and its appendages like hair, nails, and glands.

Dermal Papillae

Small, nipple-like extensions of the dermis into the epidermis, increasing the surface area for exchange of gases, nutrients, and waste.