To Prepare a Statement of Cash Flows (Indirect Method),which of the Following

question 104

Multiple Choice

To prepare a statement of cash flows (indirect method) ,which of the following items should be added back to profit to derive "cash flow from operating activities"?

• A)Depreciation expense.
• B)Increase in trade receivables.
• C)Gain on a sale of equipment.
• D)Decrease in trade payables.

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Definitions:

Curare

A toxic plant extract used traditionally as an arrow poison and medically to relax muscles during surgery.

Antagonist

A substance that blocks or dampens the action of a neurotransmitter or hormone, or a character in a story who opposes the protagonist, creating conflict.

Agonist

An agonist is a chemical or drug that binds to receptors in the body and activates them to produce a biological response.

Synapses

The junctions at which neurons communicate with other neurons, muscles, or glands through electrical or chemical signals.