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:

Unemployment Rate

An indicator of the proportion of people in the workforce who are unemployed and searching for work.

Disinflation

A slowdown in the rate of inflation; the process whereby price increases slow down, but the general price level does not decrease.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two consecutive quarters.

Age Group

A classification of people based on their age, typically used in demographics, marketing, and social studies.