The Comparative Balance Sheets of Friends,Inc

question 161

Multiple Choice

The comparative balance sheets of Friends,Inc.show a net increase in accounts receivable of $650 and a net decrease in inventory of $500.To determine net cash flow from operating activities under the indirect method,net income should be:

• A)Reduced by $650.
• B)Increased by $650.
• C)Reduced by $150.
• D)Increased by $150.

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Definitions:

Preganglionic Fibers

Nerve fibers that run from the central nervous system to a ganglion in the autonomic nervous system.

Thoracic

Relating to the thorax, the area of the body between the neck and the abdomen that contains the heart and lungs.

Lumbar

Referring to the lower region of the spine, composed of five vertebrae, which bears most of the body's weight and is associated with back pain.

Sympathetic Chain

A part of the autonomic nervous system consisting of a series of nerve fibers that run alongside the spinal column, influencing the body's fight or flight response.