When Preparing a Statement of Cash Flows Using the Indirect

question 131

Multiple Choice

When preparing a statement of cash flows using the indirect method,each of the following should be classified as an operating cash flow except:

• A)An increase in accounts receivable.
• B)A decrease in accounts payable.
• C)Proceeds from the disposal of a long-term asset with no gain or loss.
• D)An increase in prepaid expenses.
• E)A decrease in accrued expenses payable.

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Definitions:

Age Differences

Variations in behaviors, abilities, experiences, or preferences that occur due to differences in individuals' ages.

Short Period

Refers to a brief duration of time, typically used in various contexts to indicate a limited time frame.

Longitudinal

Referring to research or studies that collect data on the same subjects repeatedly over a period of time.

First Day

The initial day of an event, period, or process, often marked by new beginnings or first experiences.