In Preparing the Statement of Cash Flows by the Indirect

question 125

Multiple Choice

In preparing the statement of cash flows by the indirect method,which of the following is a correct statement of one of the general rules to convert net income to a cash-basis equivalent?

• A) Losses on the sale of long-term assets are subtracted from net income.
• B) All noncash expenses and losses are subtracted from net income.
• C) Increases in current assets are subtracted from net income.
• D) Decreases in current liabilities are added to net income.

---

Definitions:

Interpersonal Factors

Elements that affect social interaction and relationships between individuals, including communication and social skills.

Relapse

Returning to a previous state of illness or deteriorating behavior after a period of improvement or recovery, especially in the context of addiction.

SASSI-3

The Substance Abuse Subtle Screening Inventory-Third Edition, a psychological screening measure designed to identify individuals with substance dependency issues.

AUDIT Screening

An Alcohol Use Disorders Identification Test designed to screen for excessive drinking and identify potential alcohol problems.