When the Indirect Method Is Used to Determine Operating Cash

question 92

Multiple Choice

When the indirect method is used to determine operating cash flows,how is an increase in accounts receivable during the year shown on the statement of cash flows?

• A) as an operating activity
• B) as an investing activity
• C) as a financing activity
• D) as a noncash investing and financing activity

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Definitions:

Chromatin

The complex of DNA and proteins that forms chromosomes within the nucleus of a cell, involved in DNA packaging and regulation.

Chromosomes

are thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of DNA.

Hepatocytes

The main cell type of the liver, playing a vital role in metabolism, protein synthesis, and detoxification processes.

Peroxisomes

Small organelles found in almost all eukaryotic cells that contain enzymes for breaking down fatty acids and other metabolic tasks.