When Preparing the Statement of Cash Flows Using the Indirect

question 14

Multiple Choice

When preparing the statement of cash flows using the indirect method, which statement is NOT true?

• A)Depreciation expense is added to net income.
• B)Gains on the sale of long-term assets are subtracted from net income.
• C)Losses on the sale of long-term assets are subtracted from net income.
• D)Increases in current liabilities are added to net income.

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Definitions:

Files

Objects, digital or physical, that store data, information, or documents for organization and retrieval.

EHRs

Electronic Health Records, digital versions of patients' paper charts, used by healthcare providers to track patient health information.

CPT Codes

Abbreviation for Current Procedural Terminology codes, which are numbers assigned to every task and service a medical practitioner may provide to a patient, including medical, surgical, and diagnostic services.

ICD Codes

International Classification of Diseases codes used for the standardized coding of diseases and health conditions for medical billing and epidemiology.