A Supplementary Schedule Reconciling Net Income to Net Cash Flow

question 125

Multiple Choice

A supplementary schedule reconciling net income to net cash flow from operating activities is

• A)not needed when using the direct method.
• B)part of the income statement.
• C)needed when using the direct method.
• D)part of the balance sheet.
• E)used by investors to determine earnings per share.

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Definitions:

Basalt

A dark, fine-grained volcanic rock formed from the rapid cooling of basaltic lava exposed at or very near the surface of a planet or moon.

Island Arc

A series of volcanic islands shaped in a curve situated along the junction of tectonic plates, usually created over a plate being forced downward.

Hawaiian Islands

An archipelago located in the Pacific Ocean, formed by volcanic activity from a hot spot beneath the Earth’s crust.

Aleutian Islands

a chain of islands located in the Northern Pacific Ocean, forming part of the Alaska state boundary.