A Company Uses the Indirect Method to Prepare the Statement

question 119

Multiple Choice

A company uses the indirect method to prepare the statement of cash flows. How can amortization be presented on the statement of cash flows?

• A)Amortization expense can be added to net income in the financing activities section on the statement of cash flows.
• B)Amortization expense can be subtracted from net income in the operating section on the statement of cash flows.
• C)Amortization expense can be added to net income in the operating activities section on the statement of cash flows.
• D)Amortization expense can be added to net income in the investing activities section on the statement of cash flows.

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Definitions:

Cohesiveness

The degree to which members of a group or team are attracted to each other and motivated to stay in the group.

Team Leaders

Individuals who guide, direct, and lead teams towards achieving their goals and objectives, often responsible for fostering teamwork and resolving conflicts.

Coaches

Professionals who support, instruct, and guide individuals or teams to achieve specific personal or professional goals.

Managers

Individuals responsible for controlling or administering all or part of a company or similar organization.