A Reconciliation of Net Income to Net Cash Flow from Operating

question 194

Multiple Choice

A reconciliation of net income to net cash flow from operating activities for the indirect method does NOT include:

• A) balance sheet accounts
• B) revenue and expense accounts
• C) contra accounts
• D) asset accounts

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Definitions:

Sensing

Gathering information through the five senses and focusing on what actually exists.

Escalation of Commitment

Describes a pattern of behavior in which individuals continue to invest time, money, or effort into a decision or action despite evidence of its failure, often due to a desire to justify prior commitments.

Splitting Responsibility

Dividing duties, tasks, or obligations among individuals or groups to ensure accountability and efficiency in achieving objectives.

Cognitive Dissonance

A psychological state characterized by experiencing conflicting thoughts, beliefs, or attitudes, especially relating to behavioral decisions and attitude change.