When Preparing the Operating Activities Section of the Statement of Cash

question 177

True/False

When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current operating assets are subtracted from net income.

---

Definitions:

Million

A numerical term representing one thousand thousands, or 1,000,000, used often to describe quantities or amounts in demographic, financial, and statistical data.

United States

A country located in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Sole Proprietorships

A business structure where a single individual owns the company and is responsible for its debts and legal liabilities.

American Businesses

Companies and enterprises operating in the United States, contributing to its economy.