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:

Nominal Group Technique

A structured group meeting method aimed at facilitating the generation and prioritization of ideas, where participants work individually before sharing and discussing as a group.

Trend Analysis

A method of analyzing data to identify patterns or tendencies in a market, industry, or technology over time, aiding in forecasting future directions.

Expert Judgments

Assessments or decisions made by individuals with extensive knowledge or experience in a particular field.

Multivariate Regression

Multivariate Regression is a statistical method used to model the relationship between two or more independent variables and more than one dependent variable, helping in understanding complex phenomena by analyzing multiple influencing factors simultaneously.