When Preparing a Statement of Cash Flows Under the Indirect

question 53

Multiple Choice

When preparing a statement of cash flows under the indirect method, an increase in ending accounts receivable over beginning accounts receivable will result in an adjustment to net income in the operating activities section because

• A)cash was increased since accounts receivable is a current asset
• B)the accounts receivable increase was a revenue included in net income, but it was not a source of cash
• C)the net increase in accounts receivable decreases net sales and represents an assumed use of cash
• D)all changes in noncash accounts must be disclosed on the cash flow statement

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Definitions:

Emotion-Focused

An approach emphasizing the recognition, understanding, and managing of one’s emotions as central to personal well-being and therapy.

Self-Organization

The process by which systems, naturally or artificially, structure themselves without external guidance to achieve a coordinated function or pattern.

Regulation

The process of controlling or managing certain behaviors or processes, often through guidelines, norms, or laws within a specific context.

Gestalt Therapy

A form of psychotherapy that emphasizes personal responsibility and focuses on the individual's experience in the present moment, the therapist-client relationship, and the environmental and social contexts of a person's life.