Assume the Indirect Method Is Used to Compute Net Cash

question 99

Multiple Choice

Assume the indirect method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Dividend Income (assume that cash received is equal to amount reported) -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.

---

Definitions:

Pernicious Anemia

An autoimmune disorder that prevents the body from absorbing vitamin B12, leading to a severe type of anemia.

Vitamin A

An essential fat-soluble vitamin important for vision, immune function, and skin health, occurring naturally in foods like carrots, spinach, and liver.

Night Blindness

A condition characterized by difficulty seeing in low light or darkness, often due to vitamin A deficiency.

Lipids

A group of naturally occurring molecules that include fats, waxes, sterols, fat-soluble vitamins, and others, serving as energy storage, structural components of cell membranes, and signaling molecules.