In Preparing a Statement of Cash Flows Using the Indirect

question 12

Multiple Choice

In preparing a statement of cash flows using the indirect method, an increase in an unearned revenue account should

• A) be shown as a financing activity.
• B) be shown as a deduction from net income in computing net cash flows from operating activities.
• C) not be shown on the statement of cash flows.
• D) be shown as an addition to net income in computing net cash flows from operating activities.

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Definitions:

Deleterious Mutations

Changes in the DNA that are harmful to an organism, often leading to reduced fitness or survival.

Sexual Yeast Populations

Yeast communities that engage in sexual reproduction, involving the fusion of haploid cells to form a diploid cell.

Polyandry

A mating system in which a female has multiple male mates at the same time.

Genetic Diversity

The variety of genetic information present within species, populations, or individuals, crucial for adaptation, survival, and resistance to diseases.