Assume the Indirect Method Is Used to Compute Net Cash

question 74

Multiple Choice

Assume the indirect method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Gain on Sale of Investment-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:

Navigable Waters

Bodies of water that are deep and wide enough for ships and boats to travel through, often regulated to ensure free and safe passage.

Point Source

In environmental science, a single, identifiable source of pollution, such as a pipe or smokestack, that releases pollutants into the environment.

Permit

An official document giving someone authorization to do something.

Toxic Substances Control Act

A United States law enacted in 1976 that gives the Environmental Protection Agency authority to regulate the manufacture and sale of chemicals.