When Using the Indirect Method to Prepare the Statement of Cash

question 8

Multiple Choice

When using the indirect method to prepare the statement of cash flows,an increase in noncash current assets is

• A)subtracted from net income in the cash flows from operating activities section.
• B)subtracted from current liabilities in the cash flows from financing activities section.
• C)added to net income in the cash flows from operating activities section.
• D)added to equipment purchases in the cash flows from investing activities section.

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Definitions:

Liberal Democracy

A form of government where free and fair elections occur and there is protection of individual rights and freedoms.

Formal Democracy

Involves regular, competitive elections.

Elected Democracy

A form of democracy in which representatives are chosen through the electoral process by the populace to act on their behalf in governing and making policy decisions.

Postmaterialism

Is a theory that claims that growing equality and prosperity in the rich industrialized countries have resulted in a shift from class-based to value-based politics.