When Preparing the Statement of Cash Flows Using the Indirect

question 94

Multiple Choice

When preparing the statement of cash flows using the indirect method,which statement is INCORRECT?

• A)Gains on the sale of long-term assets are subtracted from net income.
• B)Losses on the sale of long-term assets are subtracted from net income.
• C)Depreciation expense is added to net income.
• D)Increases in current liabilities are added to net income.

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Definitions:

Constipation Risk

The likelihood of experiencing infrequent bowel movements or difficulty passing stool, which can be influenced by various factors.

Bed Rest

Restriction of a client’s activities, either partially or completely.

Stool Consistency

Describes the texture and firmness of stool, which can vary greatly and provide information about the health of the digestive system.

Diarrhea

A common condition characterized by frequent, loose, or watery stools, significantly more so than the normal bowel movement pattern.