If the Indirect Method Is Used to Prepare a Statement

question 6

Multiple Choice

If the indirect method is used to prepare a statement of cash flows,which of the following would be added to net income to arrive at net cash flows from operating activities?

• A)Amortization expense.
• B)Depreciation expense.
• C)Loss on sale of land.
• D)All of these choices.

---

Definitions:

Vasodilation

Widening of a blood vessel when smooth muscle that rings it relaxes.

Vertebrate

Animal with a backbone.

Hot Temperature

A condition or degree of heat that is considerably higher than what is considered comfortable or normal to living organisms and their environments.

Tubular Secretion

Ions and breakdown products of organic molecules move out of peritubular capillaries and into filtrate.