Using the Indirect Method for Preparing the Statement of Cash

question 50

Multiple Choice

Using the indirect method for preparing the statement of cash flows,which of the following would not be included as an adjustment to net income?

• A)A decrease in Prepaid Insurance.
• B)An increase in Accounts Payable.
• C)An increase in Equipment.
• D)An increase in Accounts Receivable.
• E)None of the answer choices is correct.

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Definitions:

Evidence-Based Approach

The making of decisions based on the careful, explicit, and judicious use of the best available evidence from multiple sources.

HR Metrics

Quantifiable measures used to gauge HR performance and effectiveness in an organization.

Attitudes

Mental states or positions regarding an idea, object, or person, often influenced by an individual's feelings, beliefs, and behavioral tendencies.

Organizational Context

The combination of internal and external factors, including culture, structure, and the external environment, that influence how an organization operates.