Assume the Indirect Method Is Used to Compute Net Cash

question 11

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 Inventory-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

---

Definitions:

Affective States

Various psychological states of emotion that range from positive to negative and can fluctuate based on experiences and perceptions.

Physiological Changes

Physiological changes are alterations in the body's normal biological functions, which can occur due to various factors, including stress, exercise, or health conditions.

Emotions

Intricate mental states characterized by personal feelings, bodily reactions, and actions or expressions in response.

Physiological Processes

The functions and activities that occur within living organisms to maintain life, including metabolism, homeostasis, and reproduction.