The First Line Item in the Operating Activities Section of a Spreadsheet

question 201

Multiple Choice

The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:

• A)Cash.
• B)Cash received from customers.
• C)Increase (decrease)in accounts receivable.
• D)Net income (loss).
• E)Adjustments to net income.

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Definitions:

Excitation Current

The current supplied to the field winding of a generator or motor to create the necessary magnetic field for operation.

Direct Current

An electric current that flows consistently in one direction, typical of battery power or certain types of power supplies.

Alternator's Rotor

The rotating component within an alternator that produces the magnetic field, essential for generating electricity in an automotive charging system.

Three-phase Alternator

An electric generator that produces three separate waves of alternating current, delivering power at constant rates.