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.

---

Definitions:

Sullivan's Theory

A theory of interpersonal relations and human development formulated by psychiatrist Harry Stack Sullivan, emphasizing the role of interpersonal relationships and social experiences in shaping personality.

Therapeutic Milieu

An environment structured to effect positive change in patients through social interactions with staff and other patients within a clinical setting.

Freudian Theory

A set of psychoanalytic theories developed by Sigmund Freud that emphasizes unconscious motivations and conflicts as drivers of human behavior.

Psychosexual Stage

A concept in Freudian psychology that describes the series of developmental phases children go through, during which the libido is focused on different areas of the body.