Under the Indirect Method for Preparing the Statement of Cash

question 70

Multiple Choice

Under the indirect method for preparing the statement of cash flows,increases in current liabilities are the net income in the cash flows from operating activities section.

• A)subtracted from
• B)added to
• C)not used when calculating
• D)equal to

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Definitions:

Standard Of Living

A level of material comfort in terms of goods and services available to someone or some group.

Market Failure

Market failure occurs when the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Allocate Resources

The process of distributing available resources among various competing needs and desires to achieve desired outcomes.

Efficiently

Achieving maximum productivity with minimum wasted effort or expense.