When Calculating the Net Cash Provided by Operating Activities,which Procedure

question 107

Multiple Choice

When calculating the net cash provided by operating activities,which procedure should NOT be carried out? Assume the indirect method is used.

• A) add depreciation expense
• B) subtract a decrease in accounts payable
• C) subtract a decrease in prepaid expenses
• D) add a decrease in inventories

Appreciate the historical and modern uses of negotiable instruments in business transactions.

Recognize the legal outcomes of dishonored drafts and the implications of "without recourse" endorsements.

Understand the legal requirements and implications of accepting drafts.

Grasp the correct procedures for endorsing checks and the effects of endorsement orders on negotiability.

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Definitions:

Clitellum

A thickened, glandular section of the body found in certain worms, like earthworms, important for reproduction.

Cocoon

A protective casing spun by the larvae of many insects (like moths and butterflies) and some other animals, where they undergo metamorphosis into their adult forms.

Clams

Aquatic bivalve mollusks known for their soft bodies enclosed within a hinged shell, often consumed as seafood or used in research.

Filter-Feeders

Organisms that feed by straining suspended matter and food particles from water, commonly found in aquatic environments.