When Preparing the Statement of Cash Flows by the Indirect

question 12

Multiple Choice

When preparing the statement of cash flows by the indirect method,if current liabilities increase the difference is:

• A)added to net income.
• B)added to investments.
• C)deducted from net income.
• D)subtracted from investments.

---

Definitions:

Minimum Wage

The lowest hourly pay that employers can legally give to workers.

Protected Health Information

Information about health status, provision of health care, or payment for health care that can be linked to an individual.

Employer Identification Number

A unique nine-digit number assigned by the IRS to businesses for purposes of identification and tax reporting.

Internal Revenue Service

The United States government agency responsible for the collection of taxes and enforcement of tax laws.