Assume the Indirect Method Is Used to Compute Net Cash

question 137

Multiple Choice

Assume the indirect method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Increase in Accounts Receivable-indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:

• A) Add to net income to arrive at net cash flows from operating activities
• B) Subtract from net income to arrive at net cash flows from operating activities
• C) Not used to adjust net income to calculate net cash flows from operating activities

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Definitions:

Dumping

The practice of selling goods in a foreign market at a price lower than their normal value, often as a means of driving out competition or disposing of surplus stock.

Anticompetitive

Practices or policies that restrict or restrain competition in a market, often considered unfair or unethical.

Bribery

The practice of offering, giving, receiving, or soliciting something of value to influence the action of an official or other person in charge of a public or legal duty.

Ethical View

A perspective or stance on what is morally right or wrong, often reflecting personal or societal beliefs.