The Indirect Method of Preparing a Statement of Cash Flows

question 72

Multiple Choice

The indirect method of preparing a statement of cash flows

• A)eliminates the need for a schedule of noncash investing and financing transactions.
• B)provides a different result than the direct method.
• C)adjusts net income for changes in current accounts.
• D)shows collections from customers rather than the change in Accounts Receivable.

Appreciate the importance of organizational support in retaining key employees.

Understand the role of justice and fairness in organizational discipline and employee satisfaction.

Understand the legal framework surrounding employment termination to prevent wrongful discharge.

Describe and explain the concept of the hot-stove rule in human resource management.

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Definitions:

Firm

A business that employs resources to produce a good or service for profit and owns and operate one or more plants.

Purchase

The act of buying goods or services, exchanging money for ownership or use rights.

MRP

Material Requirements Planning; a system for calculating the materials and components needed to manufacture a product.

Acre

A unit of land area used in the imperial and US customary systems, equivalent to 4,840 square yards or about 4,047 square meters.