Georgia Corp

question 127

Multiple Choice

Georgia Corp.uses the indirect method to prepare the statement of cash flows.Refer to the following section of the comparative balance sheet: How will the change in Accounts Receivable be shown on the statement of cash flows?

• A)addition to net income under the operating activities section
• B)subtraction from net income under the operating activities section
• C)positive cash flow under the financing activities section
• D)negative cash flow under the investing activities section

---

Definitions:

Accountant Liability

Legal responsibility of an accountant for any negligent or fraudulent accounting practices resulting in financial loss.

Intended Receivers

Individuals or entities that are the specific target or recipients of a particular message, information, or benefit.

Opinion Letter

A letter expressing a legal assessment or judgment from a lawyer to his or her client, often concerning the legality and details of a transaction.

Completed Audit

A comprehensive examination and verification of an organization's financial and operational systems, which has been fully carried out.