When Preparing the Statement of Cash Flows Using the Indirect

question 101

Multiple Choice

When preparing the statement of cash flows using the indirect method,which statement is FALSE?

• A)Gains on the sale of long-term assets are subtracted from net income.
• B)Losses on the sale of long-term assets are subtracted from net income.
• C)Depreciation expense is added to net income.
• D)Increases in current liabilities are added to net income.

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Definitions:

Electrical Charge

A fundamental property of matter that causes it to experience a force when placed in an electromagnetic field, categorized into positive and negative types.

Millivolts

A unit of electric potential and electromotive force equal to one thousandth of a volt, commonly used in various electrical and physiological measurements.

Neural Impulse

An electric signal that travels along neurons, facilitating communication within the nervous system.

Threshold

The minimum level of stimulus intensity required to produce a response or result.