When Preparing the Statement of Cash Flows Using the Indirect

question 106

Multiple Choice

When preparing the statement of cash flows using the indirect method, which statement is NOT true?

• A) Gains on the sale of long-term assets are subtracted from net income.
• B) Losses on the sale of long-term assets are subtracted from net income.
• C) Depreciation expense is added to net income.
• D) Increases in current liabilities are added to net income.

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Definitions:

Emotion Regulation

The method through which people affect their feelings, including the way they feel and convey them.

Autonomy

The right or condition of self-government, or in personal development, the capacity to make an informed, uncoerced decision.

Shame and Doubt

A stage in Erikson's psychosocial development theory where toddlers learn to exert their will and develop a sense of autonomy, or experience doubt about their abilities.

Self-Recognition

The ability to recognize oneself as an individual, separate from others, often tested through mirror self-recognition tasks.