If a Company Uses the Indirect Method to Prepare the Statement

question 108

Multiple Choice

If a company uses the indirect method to prepare the statement of cash flows,which of the following items would be subtracted from net income to determine the net cash flow from operating activities?

• A)A loss on the sale of equipment would be subtracted from net income to determine the net cash flow from operating activities in the statement of cash flows.
• B)An increase in dividends payable would be subtracted from net income to determine the net cash flow from operating activities in the statement of cash flows.
• C)Amortization of a premium on bonds payable would be subtracted from net income to determine the net cash flow from operating activities in the statement of cash flows.
• D)Depreciation expense would be subtracted from net income to determine the net cash flow from operating activities in the statement of cash flows.

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Definitions:

Schizophrenia

A mental disorder characterized by distorted thinking, perceptions, emotions, language, sense of self, and behavior.

Biological Basis

Refers to the underlying genetic, neurophysiological, and biochemical factors that contribute to human behavior and mental states.

Mentally Healthy Perspective

A viewpoint characterized by balanced emotional, psychological, and social well-being, where an individual can cope with normal stresses and work productively.

Conflicted Relationships

Interpersonal connections that are marked by ongoing disagreement or discord.