Assume the Indirect Method Is Used to Compute Net Cash

question 19

Multiple Choice

Assume the indirect method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Decrease in Accrued Liabilities-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:

Conservation Biology

The science of protecting and managing biodiversity to prevent species, their habitats, and ecosystems from excessive rates of extinction.

Economic

Relating to the system of production, distribution, and consumption of goods and services in a society, and the study of how scarce resources are allocated.

Biomass

The total mass of all living organisms in a given area or volume; it can also refer to plant or animal matter used as fuel.