A Company Uses the Indirect Method to Prepare the Statement

question 99

Multiple Choice

A company uses the indirect method to prepare the statement of cash flows. Which of the following items would be subtracted from net income to determine the net cash flow from operating activities on the statement of cash flows?

• A)An increase in dividends payable would be subtracted from net income to determine the net cash flow from operating activities in the statement of cash flows.
• B)A loss on the sale of equipment would be subtracted from net income to determine the net cash flow from operating activities in the statement of cash flows.
• C)A gain on the sale of equipment would be subtracted from net income to determine the net cash flow from operating activities in the statement of cash flows.
• D)Depreciation expense would be subtracted from net income to determine the net cash flow from operating activities in the statement of cash flows.

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Definitions:

Psychiatry

A branch of medicine focused on the diagnosis, treatment, and prevention of mental, emotional and behavioral disorders.

DSM-IV

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, a handbook used by healthcare professionals as a guide to the diagnosis of mental disorders.

Psychiatric Diagnoses

The classification of mental disorders by identifying and categorizing symptoms according to standardized criteria, to guide treatment and understanding.

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship as a way of uncovering unconscious thoughts and feelings.