Assume the Indirect Method Is Used to Compute Net Cash

question 99

Multiple Choice

Assume the indirect method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Dividend Income (assume that cash received is equal to amount reported) -indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:

• A)Add to net income to arrive at net cash flows from operating activities.
• B)Subtract from net income to arrive at net cash flows from operating activities.
• C)Not used to adjust net income to calculate net cash flows from operating activities.

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Definitions:

Professional Athletes

Professional athletes are individuals who receive payment for their athletic performance and compete in organized sports.

Encouragement

Support or motivation given to someone to increase their confidence or improve their performance.

Biological Explanation

An account that uses biological factors, such as genetic, neurological, or physiological mechanisms, to understand phenomena or behaviors.

Motor Tasks

Activities or operations requiring the movement and coordination of muscles and limbs.