When Reporting Operating Activities in a Statement of Cash Flows

question 166

Multiple Choice

When reporting operating activities in a statement of cash flows, depreciation is:

• A) added back to net income in the direct method.
• B) ignored in the indirect method.
• C) added back to net income in the indirect method.
• D) subtracted from net income in the indirect method.

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Definitions:

Core Body Temperature

The internal temperature of the body, which is closely regulated and necessary for proper physiological functioning.

Half-hour

A period of time equal to thirty minutes, often used to describe the duration of events or activities.

Endocrine System

A collection of glands that produce hormones regulating metabolism, growth, sexual function, and mood among other functions.

Growth Hormones

Hormones that stimulate growth, cell reproduction, and cell regeneration in humans and other animals.