When Using the Indirect Method,how Is an Increase in Accounts

question 54

Multiple Choice

When using the indirect method,how is an increase in accounts receivable during the year shown on the statement of cash flows?

• A)As an operating activity
• B)As an investing activity
• C)As a financing activity
• D)As a noncash investing and financing activity

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Definitions:

Tax Year

The 12-month period for which tax is calculated and paid. It can be a calendar year or a fiscal year.

Filing Joint Return

The tax filing status used by married couples who choose to combine their income and report it on one tax return.

Qualifying Widow(er)

A tax filing status available to a widowed individual with dependents, providing eligibility for standard deduction and tax rates that are more favorable for a specific period following the spouse's death.

Qualifications

The skills, experience, and education required to perform a job or task, or criteria to receive a benefit.