Using the Indirect Method of Preparing the Statement of Cash

question 84

Multiple Choice

Using the indirect method of preparing the statement of cash flows,which of the following would be added to net income?

• A)Depletion expense
• B)An increase in accounts receivable
• C)A decrease in accounts payable
• D)A gain on the sale of property

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Definitions:

Economic Models

Simplified representations of complex economic processes used to predict future economic activity.

Simplifying Assumptions

Rational approximations or conditions made to simplify complex systems or models so that they are easier to analyze or understand.

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Incidents or developments that affect the economy, such as financial crises, market movements, or policy changes.

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A set of principles that explain how economies function, including the distribution of resources, and the production and consumption of goods and services.