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.

---

Definitions:

Motivational Practices

Strategies and methods employed to inspire, encourage, and stimulate individuals or groups toward achieving goals or improving performance.

Organizational Culture

The shared values, beliefs, and practices that characterize an organization and influence its members' behavior.

Management Practices

The array of techniques, strategies, and approaches employed by managers to effectively lead and run an organization.

Flexible Work Arrangements

Employment terms that allow employees to vary their work hours, locations, or schedules to better accommodate personal needs while meeting business demands.