If the Indirect Method Is Used to Prepare a Statement

question 96

Multiple Choice

If the indirect method is used to prepare a statement of cash flows, which of the following would be deducted from net income to arrive at net cash flows from operating activities?

• A) Increase in accrued liabilities
• B) Increase in income taxes payable
• C) Increase in accounts receivable
• D) Decrease in prepaid expenses

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Definitions:

Census Data

Statistical data about a population and its characteristics, usually collected by a government.

Sociological Analysis

The examination and interpretation of social behaviors, patterns, and structures to understand human society and social interactions.

Sample

A subset of a population selected for measurement, observation, or questioning to provide statistical information about the population.

Population

Refers to the total number of people living in a specific area at a given time.