Assume the Indirect Method Is Used to Compute Net Cash

question 75

Multiple Choice

Assume the indirect method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Depreciation Expense-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:

Inferences

The process of drawing logical conclusions about a population based on sample data.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to infer the population parameter.

Childcare

The care and supervision of a child or multiple children, usually from age six weeks to age thirteen.

Standard Deviation

An indicator quantifying the spread or divergence of values within a dataset.