The Indirect Method Calculates the Net Cash Flow from Operating

question 6

Multiple Choice

The indirect method calculates the net cash flow from operating activities by adjusting net profit or loss for the effects of:

• A) Changes during the period in inventories and operating receivables and payables.
• B) Non-cash items such as depreciation,provisions,deferred taxes.
• C) All other items included in the net income for which the cash effects are investing or financing cash flows.
• D) All of these

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Definitions:

Proprioceptors

Sensory receptors located in muscles, tendons, and joints, providing information about body position and movement by detecting changes in muscle tension and joint activity.

Mechanoreceptors

Sensory receptors responsible for sensing mechanical pressure or distortion, involved in detecting touch, pressure, and sound.

Chemoreceptors

Sensory receptors that respond to chemical stimuli, playing a key role in taste, smell, and monitoring internal chemical conditions.

Photoreceptors

Specialized cells found in the retina of the eye that are sensitive to light, converting light signals into neural signals for visual recognition.