Avatar Company Uses the Indirect Method to Prepare the Statement

question 36

Multiple Choice

Avatar Company uses the indirect method to prepare the statement of cash flows. Please refer to the following section of the comparative balance sheet: How will the change in Accrued liabilities be shown on the statement of cash flows?

• A)Operating activities minus positive cash flow
• B)Operating activities minus negative cash flow
• C)Financing activities minus positive cash flow
• D)Investing activities minus negative cash flow

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Definitions:

Ointment

A semi-solid preparation applied topically to the skin or mucous membranes for therapeutic reasons.

Parenteral

Any medical therapy administered in a way other than through the digestive system, commonly including injections through intravenous, intramuscular, or subcutaneous methods.

Enema

A procedure in which liquid or gas is injected into the rectum to expel its contents or to introduce drugs or permit X-ray imaging.

Prescription

A written order from a healthcare professional authorizing a patient to be provided a medicine or treatment.