Assuming the Use of the Indirect Method to Prepare the Statement

question 95

Essay

Assuming the use of the indirect method to prepare the statement of cash flows,indicate whether each of the following items would be added to net income,subtracted from net income,or not included in the operating activities section.Use the letters "A" for added,"S" for subtracted,or "N" for not included in the operating activities section.
$$\begin{array} { | l | l | c | } \hline & & \text { Answers } \\\hline \text { a. } & \text { Example: Increase In Accounts Receivable } & \text { S } \\\hline \text { b. } & \text { Decrease in Accounts Payable } & \\\hline \text { c. } & \text { Decrease in Bond Payable } & \\\hline \text { d. } & \text { Decrease in Inventory } & \\\hline \text { e. } & \text { Increase in Common Stock } & \\\hline \text { f. } & \text { Decrease in Accounts Receivable } & \\\hline \text { g. } & \text { Depreciation Expense } & \\\hline \text { h. } & \text { Decrease in Equipment } & \\\hline \text { i. } & \text { Decrease in Prepaid Rent } & \\\hline\end{array}$$

---

Definitions:

Class

refers to a group of people within society who share similar socio-economic conditions, earning potential, and lifestyle.

Hostile

Displaying or feeling enmity or opposition; unfriendly or adverse.

Simmel

A German sociologist and philosopher, Georg Simmel, known for his analyses of individual culture, social structures, and the intersection of individuality and modern society.

Objective Culture

The physical and institutional manifestations of culture, such as art, laws, and technology, which exist independently of individuals.