When Reconciling Profit with Net Cash Flow from Operating Activities

question 48

Multiple Choice

When reconciling profit with net cash flow from operating activities:

• A)subtract increases in current assets and add increases in current liabilities.
• B)add increases in current assets and subtract increases in current liabilities.
• C)add increases in current assets and add increases in current liabilities.
• D)None of the above

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Definitions:

Intermediaries

Agents or businesses that act as a middleman in the distribution process or transactions between producers and consumers.

Agents

An intermediary who brings buyers and sellers together and facilitates the exchange.

Brokers

An intermediary who represents clients who buy or sell specialized goods or seasonal products.

Wholesalers

An intermediary who buys products in bulk from producers and resells them to other wholesalers or to retailers.