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.

---

Definitions:

High-Strength Plastics

Plastics engineered for superior performance, offering enhanced strength and durability for demanding applications in various industries.

Composite Materials

Materials made from two or more constituent materials with significantly different physical or chemical properties, combined to create a material with characteristics different from the individual components.

Carbon And Glass Fibres

Strong, lightweight materials used in composites for a variety of applications, including automotive parts, sporting goods, and aerospace components.

Depletion Time

The amount of time it takes to fully use up a particular natural resource at the current rate of consumption.