In Creating a Cash Flow Statement Using the Indirect Method,which

question 99

Multiple Choice

In creating a cash flow statement using the indirect method,which of the following statements is TRUE about depreciation expense?

• A)It is added back to purchases of non-current assets under investing activities.
• B)It is added back as an adjustment to profit in the operating activities section.
• C)It is shown as a negative cash flow under operating activities.
• D)It is shown as a negative cash flow in the investing activities section.

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Definitions:

Gyri

The raised folds or convolutions in the cerebral cortex that increase the brain's surface area and cognitive ability.

Convolutions

The ridges of brain matter between the sulci; also called gyri.

Respiration

The biochemical process in living organisms involving the exchange of gases (oxygen and carbon dioxide) to produce energy.

Brainstem

A crucial part of the central nervous system that connects the brain to the spinal cord and controls vital functions such as breathing and heart rate.