The Indirect Method of Calculation of the Cash Flow from Operations

question 14

Multiple Choice

The indirect method of calculation of the cash flow from operations consists of the following steps

• A) Start with reported profit after taxes and add-back depreciation allowance for the period.
• B) Start with reported profit after taxes,add-back accumulated depreciation,add-back non-cash costs and adjust for the variations of balances of accounts receivable,accounts payable and inventories between the beginning and the closing of the period.
• C) Start with reported profit after taxes,add-back depreciation allowance,add-back non-cash costs and adjust for the variations of balances of accounts receivable,accounts payable and inventories between the beginning and the closing of the period.
• D) Start with reported profit after taxes,add-back depreciation allowance,add-back interest expenses net of tax shield,and adjust for the variations of balances of accounts receivable,accounts payable and inventories between the beginning and the closing of the period.

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Definitions:

Adolescents

Individuals in the transitional stage of human growth and development that occurs between childhood and adulthood, typically characterized by significant physical, psychological, and social changes.

Binge Drinkers

Individuals who consume a large quantity of alcohol in a short period of time, often with the purpose of becoming intoxicated.

American Teens

Refers to adolescents in the United States, often focusing on their social, cultural, and psychological aspects.

Suicidal Behavior

Actions or plans to cause one's own death intentionally.