When Preparing the Statement of Cash Flows by the Indirect

question 48

Multiple Choice

When preparing the statement of cash flows by the indirect method,if accumulated depreciation increases the difference is:

• A)added to net income.
• B)added to investments.
• C)deducted from net income.
• D)not considered in the statement of cash flows using the indirect method.

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Definitions:

Differentiating

The process of becoming different in the course of development or making distinctions between entities or conditions.

Neurons

Nerve cells that transmit information through electrical and chemical signals in the body’s nervous system.

Blood Clot

A mass formed from platelets and fibrin in the blood to stop bleeding by clogging broken blood vessels.

Fibrinogen

A blood plasma protein that's converted into fibrin in the blood clotting process, playing a key role in wound healing.