A Statement of Cash Flows Prepared Under the INDIRECT Method

question 42

Multiple Choice

A statement of cash flows prepared under the INDIRECT method adds and subtracts certain items to the base number. Decreases in unearned revenues would be shown as

• A) a deduction from net income.
• B) an addition to net income.
• C) a deduction from sales.
• D) an addition to sales.

---

Definitions:

Standardized Tests

Tests that are administered and scored in a consistent, or "standard", manner, which are designed to measure a student's academic performance against a common set of criteria.

Self-control

the ability to regulate one’s thoughts, emotions, and behaviors, especially in challenging situations, in order to achieve long-term goals.

Willpower

The ability to resist short-term temptations in order to meet long-term goals.

Self-Esteem

A person's personal assessment of their own significance or importance.