Downsizing an Organization Typically Has All of the Following Effects

question 12

Multiple Choice

Downsizing an organization typically has all of the following effects on the organization EXCEPT

• A) demoralization of surviving employees.
• B) short-term reduction in labor costs.
• C) revenue generation.
• D) extra costs in the form of severance pay and outplacement.

Understand the adjustments made to net income in computing cash flows from operating activities using the indirect method.

Recognize transactions that do not affect cash and how they are reported.

Comprehend the impact of changes in current asset and current liability accounts on cash flows from operating activities.

Understand the classification of different types of cash flows in the statement of cash flows.

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Definitions:

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