Assume the Indirect Method Is Used to Compute Net Cash

question 117

Multiple Choice

Assume the indirect method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Interest Income (assume that cash received is equal to amount reported) -indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:

• A)Add to net income to arrive at net cash flows from operating activities.
• B)Subtract from net income to arrive at net cash flows from operating activities.
• C)Not used to adjust net income to calculate net cash flows from operating activities.

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Definitions:

Positive and Negative Effects

Refers to the beneficial or harmful outcomes that result from actions, processes, or conditions, impacting various aspects of life or the environment.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Work

The effort or activity directed towards the production or accomplishment of something, typically for earning income.

Family Stressors

Events or conditions within the family unit that cause emotional strain and tension among its members.