Assume the Indirect Method Is Used to Compute Net Cash

question 136

Multiple Choice

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

Visual Cortex

A part of the cerebral cortex in the brain responsible for processing visual information.

Visual Fields

The range of vision that can be seen without moving the eyes.

Auditory Tube

Also known as the Eustachian tube, it connects the middle ear to the nasopharynx and helps equalize pressure in the middle ear.

Middle Ear

Air-filled space within the temporal bone; contains auditory ossicles; between the external and internal ear.