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:

Primary Motor Cortex

The brain region responsible for the initiation and control of voluntary movements, located in the frontal lobe.

Specific Movements

Targeted or deliberate muscle movements or actions that are designed to achieve a particular result or function.

CNS

Central Nervous System, comprising the brain and spinal cord, responsible for processing and sending out neural signals.

Stepwise Sequence

A methodical approach to solving problems or performing tasks where progress is made in a logical sequence of steps.