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:

Siphons Sugars

The process by which some organisms, such as certain insects with specialized mouthparts, extract sugary fluids from plants.

Infects Trees

A process by which pathogens such as bacteria, viruses, or fungi attack and cause disease in tree species.

Food Materials

Substances consumed to provide nutritional support for an organism, typically of plant or animal origin.

Intracellularly

Occurring or found within a cell.