If the Indirect Method Is Used to Prepare a Statement

question 105

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)Decrease in accrued liabilities.
• B)Decrease in income taxes payable.
• C)Decrease in accounts receivable.
• D)Increase in prepaid expenses.

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Definitions:

Amyotrophic Lateral Sclerosis

A progressive neurodegenerative disease affecting motor neurons, leading to muscle weakness and atrophy.

Multiple Sclerosis

An autoimmune disorder where the body's immune system attacks the protective sheath (myelin) of nerve fibers, causing communication problems between the brain and the rest of the body.

End Plate

On a muscle, the receptor–ion complex that is activated by the release of the neurotransmitter acetylcholine from the terminal of a motor neuron.

Muscle Membrane

The semipermeable membrane surrounding muscle cells or fibers, essential for muscle contraction and signaling.