Brandon,Inc

question 126

Multiple Choice

Brandon,Inc.had a $1,000 decrease in accounts receivable during the year.Which of the following would appear on the statement of cash flows prepared using the indirect method?

• A)Add $1,000 to net income in order to arrive at net cash provided by operating activities
• B)Deduct $1,000 from net income in order to arrive at net cash provided by operating activities
• C)Deduct $1,000 to arrive at net cash flows from investing activities
• D)Do not include the $1,000 in the statement of cash flows,but show it in an accompanying schedule of non-cash transactions

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Definitions:

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Square

A four-sided polygon with all sides of equal length and all angles equal to 90 degrees, often used in geometry and construction.

Lever

A simple machine consisting of a rigid bar that pivots around a fixed point, known as the fulcrum, used to amplify force.

Ratchet Wheels

Gears featuring teeth that engage with a pawl or similar device, allowing rotation in one direction while preventing it in the opposite, used in various mechanical devices.