If a Company Is Using the Indirect Method to Prepare

question 2

Multiple Choice

If a company is using the indirect method to prepare the statement of cash flows, identify where an increase in the accounts receivable account should be reported:

• A) A decrease in cash flows from investing activities
• B) An increase in cash flows from operating activities
• C) An increase in cash flows from investing activities
• D) A decrease in cash flows from operating activities
• E) An increase in cash flows from financing activities

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Definitions:

Mental Illness

A wide range of mental health conditions that affect mood, thinking, and behavior, potentially causing distress or problems functioning in social, work, or family activities.

Cognitive Distortion

A psychological phenomenon where an individual's thinking becomes biased or distorted, leading to flawed conclusions or negative thinking patterns.

Incompetent

Incompetent describes a lack of ability, qualification, or adequacy to perform a specific task or duty adequately.

Self-actualization

The achievement or actualization of an individual's talents and abilities, seen as a fundamental motivation or necessity inherent in all people.