The Comparative Balance Sheets for Flagler Co

question 89

Multiple Choice

The comparative balance sheets for Flagler Co.for 2018 and 2017 indicate that accounts receivable decreased during 2018.Flagler uses the indirect method of preparing the Operating Activities section of its statement of cash flows.How will the decrease in accounts receivable be reported on the statement of cash flows?

• A)It will be included in the amount of cash and cash equivalents at the end of 2018.
• B)It will be deducted from net income in the Operating Activities section.
• C)It will be added to net income in the Operating Activities section.
• D)It will be reported as a cash outflow in the Investing Activities section.

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Definitions:

Statement of Purpose

A written document that outlines an individual's intentions, goals, and reasons for applying to a program, job, or organization.

Formal Work Plan

A detailed document that outlines the tasks, timelines, resources, and goals of a project or initiative.

Scope of Investigation

The extent or range of the area or subject matter that something deals with or to which it is relevant.

Timeframe

A period of time during which certain events occur or conditions apply; often specified or limited.