When Preparing a the Operating Section of the Statement of Cash

question 120

Multiple Choice

When preparing a the operating section of the statement of cash flows using the indirect method,which of the following items are added to net income?

• A)decrease in accrued expenses
• B)gain on sale of long-term assets
• C)bad debt expense
• D)increase in accounts receivable

---

Definitions:

Psychopaths

Individuals with a personality disorder characterized by persistent antisocial behavior, impaired empathy and remorse, and bold, disinhibited, and egotistical traits.

Sociopaths

Individuals with a personality disorder characterized by persistent antisocial behavior, impaired empathy, and often a lack of remorse.

Conduct Disorder

A mental disorder characterized by a repetitive and persistent pattern of behavior that violates the rights of others or social norms.

Attention-Deficit/Hyperactivity Disorder

A neurodevelopmental disorder characterized by a consistent pattern of inattention and/or hyperactivity-impulsivity that interferes with functioning or development.