Assume the Indirect Method Is Used to Compute Net Cash

question 117

Multiple Choice

Assume the indirect method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Interest 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:

Corporate Strategy

The overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals.

Union Contracts

Agreements negotiated between employers and labor unions that outline wages, working conditions, and other employment terms for the workers represented by the unions.

Human Resource Planning

Strategic alignment of an organization's human resources with its business goals, including workforce planning, recruiting, and training.

Competencies

A set of defined skills, knowledge, abilities, and attributes that are necessary for successful performance in a job or role.