Why Do Accountants Add Depreciation Expense to Net Income When

question 49

Multiple Choice

Why do accountants add Depreciation Expense to net income when determining net cash provided by operating activities? Assume the indirect method is used.

• A) because depreciation expense is a source of cash
• B) because depreciation expense requires the outflow of cash
• C) because depreciation expense is an investing activity that should be reported in the investing section of the cash flow statement
• D) because it cancels the earlier deduction when calculating net income

Describe the process and importance of scaffolding in Vygotsky's theory.

Identify the significance of private speech in cognitive development according to Vygotsky.

Understand Jean Piaget's stages of cognitive development and how they apply from birth through adulthood.

Identify and critique key aspects of Vygotsky's theory, including the concept of scaffolding.

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Definitions:

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations with current assets.

Quick Ratio

A measure of a company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.

Accounts Receivable

Open accounts owed to the business by trade customers.

North American Industry Classification System

A standardized system used by Canada, Mexico, and the United States to classify businesses and industries for the purpose of collecting, analyzing, and publishing statistical data.