In the Preparation of a Statement of Cash Flows, Adjustments

question 123

Multiple Choice

In the preparation of a statement of cash flows, adjustments to net income to reconcile net income to cash from operating activities include

• A)dividends received.
• B)the difference between the purchase price and the resale price of treasury stock (assuming the cost method of accounting for treasury stock).
• C)amortization of organization cost.
• D)redemption premium on preferred stock redeemed during the period.
• E)All of these answer choices are correct.

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Definitions:

Reactive Power

The portion of electricity that establishes and sustains the electric and magnetic fields in AC operations, measured in volt-amperes reactive (VAR).

RLC Series Circuit

A circuit configuration comprising a resistor (R), inductor (L), and capacitor (C) connected in series.

Applied Voltage

The voltage that is externally applied to an electrical circuit or device, which drives the current through it.

Current Flow

The movement of electric charge carriers, like electrons or ions, through a conductor or space.