Assume the Indirect Method Is Used to Compute Net Cash

question 74

Multiple Choice

Assume the indirect method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Decrease in Accounts Payable-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:

Face-to-face

Direct interaction or communication between people in the same physical space.

Null Hypothesis

A default hypothesis that there is no significant effect or difference for a particular population or phenomenon.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, denoted by alpha.

Face-to-face

A form of communication or interaction that takes place in person as opposed to through electronic means.