Chisholm Associates Uses the Indirect Method for Preparing the Statement

question 83

Multiple Choice

Chisholm Associates uses the indirect method for preparing the statement of cash flows.The following accounts and balances were drawn from the company's accounting records:

Net income for the period was $80,000.The net cash flows from operating activities would be:

• A)$70,400.
• B)$65,600.
• C)$76,000.
• D)$94,400.

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Definitions:

Fetus

A developing mammal or human within the womb, after the embryonic stage and before birth.

Embryo

An embryo is an early stage of development of a multicellular organism following fertilization, prior to becoming a fetus.

Blastocyst

An early stage of embryonic development in mammals; a structure formed in the early development of mammals. It possesses an inner cell mass, which subsequently forms the embryo.

Conception

The process of fertilization where a sperm cell unites with an egg cell, leading to the formation of a zygote.