In Preparing a Statement of Cash Flows Using the Indirect

question 172

Multiple Choice

In preparing a statement of cash flows using the indirect method,the Depreciation Expense ________.

• A) is added back as an adjustment to Net Income in the operating activities section
• B) is shown as a negative cash flow in the investing activities section
• C) is added back to Purchases of Plant Assets under investing activities
• D) is shown as a negative cash flow under operating activities

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Definitions:

Storytelling

The act of conveying events, concepts, or messages through narrative and creative expression, often to entertain, educate, or instill moral values.

Main Supporting Points

The key arguments or pieces of evidence that back up the central idea or thesis in a written work or presentation.

Indirect Approach

A communication style that is more subtle and nuanced, often involving suggestions and implications rather than direct statements.

Direct Approach

A communication method where the main idea or request is presented at the beginning, followed by supporting details.