Assume the Indirect Method Is Used to Compute Net Cash

question 88

Multiple Choice

Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements-Loss on Sale of Investment-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:

Direct Instruction

A teacher-centered instruction method that includes explicit teaching through lectures or demonstrations of the material, as opposed to exploratory models.

Vicarious Conditioning

Classical conditioning of an involuntary response or emotion by watching the reaction of another person.

Trustworthy

The quality of being reliable, honest, and able to be trusted.

Self-Esteem

An individual's subjective evaluation of their own worth, encompassing beliefs about oneself as well as emotional states such as triumph, despair, pride, and shame.