When Using the Indirect Method,an Increase in Current Liabilities Is

question 6

Multiple Choice

When using the indirect method,an increase in current liabilities is:

• A) subtracted in the cash flows from financing activities section.
• B) subtracted from net income in the cash flows from operating activities section.
• C) added to net income in the cash flows from operating activities section.
• D) added in the cash flows from investing activities section.

---

Definitions:

Extensibility

The capability of being stretched or extended.

Excitability

The ability of a cell or organism to respond to environmental stimuli by changing its bioelectric state.

Elasticity

The capacity of a material or body to return to its original shape after being stretched or compressed.

Smooth Muscles

Involuntary, non-striated muscles found in the walls of internal organs and blood vessels, controlling their movements.