Assume the Indirect Method Is Used to Compute Net Cash

question 19

Multiple Choice

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

Normal Awareness

The state of being conscious of one's surroundings, thoughts, and feelings in a typical, everyday situation.

Dissociation

A mental process that causes a lack of connection in a person’s thoughts, memory, and sense of identity.

Memory Snapshots

Vivid, detailed memories of specific events, often emotionally charged, that can be recalled with clarity.

Painful Medical Procedures

Medical interventions or treatments that cause physical discomfort or pain to the patient.