Using the Indirect Method to Prepare the Statement of Cash

question 27

Multiple Choice

Using the indirect method to prepare the statement of cash flows,dividends paid during the year are:

• A)subtracted from net income in the operating activities section.
• B)added to net income in the operating activities section.
• C)shown as a cash outflow in the financing activities section.
• D)shown as a cash outflow in the investing activities section.

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Definitions:

Biological Fathers

The male parent from whom an individual inherits half of their genetic makeup.

Stepfathers

Male adults who are married to one's biological or legal mother but are not one's biological father, often playing a parental role.

Adaptive Flexibility

The capacity of an organism to adjust its behaviour and physiology in response to changing environmental conditions.

Fitness

A state of health and well-being that is achieved through a combination of physical exercise, proper nutrition, and sufficient rest.