Salem, Inc

question 77

Multiple Choice

Salem, Inc. uses the indirect method to prepare its statement of cash flows. Salem's Accumulated Depreciation-Trucks account increased during the period. Salem did not purchase or sell equipment during the period. The increase in Accumulated Depreciation-Trucks is:

• A) subtracted from net income to determine net cash provided by operating activities.
• B) added to net income to determine net cash provided by operating activities.
• C) shown as a cash outflow on the investing activities section.
• D) shown as a cash outflow on the financing activities section.

Understand the various elements of business activity and their interconnections.

Distinguish between tangible and intangible products.

Grasp the economic issues of supply and demand, including understanding limited resources.

Comprehend the concept of profit as the primary goal of business and its societal implications.

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Definitions:

Genetic Abnormalities

Conditions caused by anomalies in chromosomes or genes, leading to various disorders or syndromes.

Mother

A female parent or guardian who provides care, support, and nurturance to her offspring.

Monozygotic Twins

Twins that develop from a single fertilized egg and are genetically identical.

Dizygotic Twins

Also known as fraternal twins, these are two siblings born at the same time who have developed from two different eggs fertilized by two different sperm cells.