When Preparing the Statement of Cash Flows Under the Indirect

question 77

Multiple Choice

When preparing the statement of cash flows under the indirect method,all of the following would be an appropriate procedure except

• A)adding depreciation expense.
• B)subtracting a decrease in accounts payable.
• C)subtracting a decrease in prepaid expenses.
• D)adding a decrease in inventories.
• E)subtracting a gain from the sale of a fixed asset.

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Definitions:

Savings Rate

The proportion of disposable income that individuals or households save rather than spend on consumption.

Educational System

The organized network of formal and informal structures that collectively provide education and learning environments and experiences to individuals in a society.

Computer Skills

The ability to operate, manage, and utilize computers and related technology efficiently for various tasks and applications.

Productivity Growth

Refers to the increase in the amount of goods and services produced per unit of input over a period of time.