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:

Air Pollution

The presence of substances in the air that are harmful to human health, the environment, or cause climate change.

Opportunity Costs

Leaving potential advantages from various options on the table by picking a particular one.

Marginal Cost

The rise in overall expenses resulting from the production of an additional unit.

Employment Discrimination

Unfair treatment of employees based on race, gender, religion, national origin, physical or mental disability, age, sexual orientation, and other characteristics.