In Preparing a Statement of Cash Flows Using the Indirect

question 122

Multiple Choice

In preparing a statement of cash flows using the indirect method,a decrease in an unearned revenue account should

• A)be shown as a financing activity.
• B)be shown as a deduction from net income in computing net cash flows from operating activities.
• C)not be shown on the statement of cash flows.
• D)be shown as an addition to net income in computing net cash flows from operating activities.

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