A Company Uses the Indirect Method to Prepare the Statement

question 90

Multiple Choice

A company uses the indirect method to prepare the statement of cash flows.Which of the following items would be subtracted from net income in determining the net cash flow from operating activities?

• A)Amortization of a premium on bonds payable would be subtracted from net income.
• B)An increase in dividends payable would be subtracted from net income.
• C)A loss on the sale of equipment would be subtracted from net income.
• D)Depreciation expense would be subtracted from net income.

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Definitions:

TPM

Trusted Platform Module (TPM) is a hardware-based security feature that can securely store information such as passwords and encryption keys, enhancing device security.

Biometric Device

A device used to authenticate someone based on one or more physical traits, such as a fingerprint, an eyeball (retina), or a hand, or a behavioral trait such as voice or signature.

Computer Security

The protection of computing systems and the data that they store or access against unauthorized access, theft, or damage.

Network Security

Protective measures and protocols to safeguard information and infrastructure from unauthorized access, misuse, or harm.