To Prepare the Statement of Cash Flows Using the Indirect

question 51

Multiple Choice

To prepare the statement of cash flows using the indirect method,dividends paid are ________.

• A)added to net income
• B)subtracted from net income
• C)already included in net income
• D)included as an item in the financing section

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Definitions:

Treasury Bond

A long-term, fixed-interest government security with a maturity of more than ten years, considered a safe investment.

Bid

The price a buyer is willing to pay for a security or asset.

Ask

The lowest price a seller is willing to accept for an asset being sold on the market, opposite of the bid price.

AAA Corporate Bonds

The highest quality bonds issued by corporations with a strong ability to repay the debt, making them low-risk investments.