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:

Group Diversity

The presence of a wide range of differences among members within a group, including ethnicity, gender, age, skills, and beliefs.

Creativity

The ability to produce original and valuable ideas or solutions to problems, often by thinking in novel ways.

Functional Diversity

Diversity in a group or organization that encompasses the differences in skills, knowledge, background, and abilities among members.

Talents

Natural aptitudes or skills that an individual possesses, which can be developed through practice and commitment.