In Preparing Cash Flows Provided by Operating Activities Using the Indirect

question 28

Multiple Choice

In preparing cash flows provided by operating activities using the indirect method, which of the following items is added to net income?

• A)Non-cash expenses such as depreciation
• B)Gains on investing and financing transactions
• C)Increases in current asset balances
• D)Decreases in current liability balances

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Definitions:

Ex Post Facto

A study or analysis conducted after an event has occurred, used to discover causes even though variables are not manipulated by the researcher.

Pretest Posttest

A research design that measures the effects of an intervention by comparing subject scores before and after the intervention.

Experimental Design

The blueprint for conducting a scientific study to ensure that it is valid and reliable; it includes planning, conducting, and analyzing an experiment.

Two-by-two

A 2x2 matrix or table used to categorize or compare data points based on two binary criteria, often used in research for analysis or decision-making.