Assume the Indirect Method Is Used to Compute Net Cash

question 142

Multiple Choice

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

B2C Model

Business-to-Consumer model, a sales model in which businesses sell products or services directly to consumers.

Sell-Side Marketplaces

Online platforms where sellers can offer products or services directly to buyers, typically used in business-to-business or business-to-consumer transactions.

B2C Model

Business-to-Consumer model, a commercial transaction model where businesses sell products or services directly to the end-users or consumers.

Buy-Side Marketplace

A digital or physical marketplace that focuses on buyers, allowing them to search, compare, and purchase goods or services.