Assuming the Use of the Indirect Method to Prepare the Statement

question 44

Essay

Assuming the use of the indirect method to prepare the statement of cash flows, indicate whether each of the following items would be added to net income, subtracted from net income or not included in the operating activity section. Use the letters "A" for added; "S" for subtracted or "N" for not included in operating activity section. $$\begin{array} { | l | l | c | } \hline & & \text { Answers } \\\hline & \text { Example: Increase In Accounts Receivable } & \text { S } \\\hline \text { a. } & \text { Decrease in Accounts Payable } & \\\hline \text { b. } & \text { Decrease in Bond Payable } & \\\hline \text { c. } & \text { Decrease in Inventory } & \\\hline \text { d. } & \text { Increase in Common Stock } & \\\hline \text { e. } & \text { Decrease in Accounts Receivable } & \\\hline \text { f. } & \text { Depreciation Expense } & \\\hline \text { g. } & \text { Decrease in Equipment } & \\\hline \text { h. } & \text { Increase in Prepaid Rent } & \\\hline \text { i. } & \text { Decrease in Prepaid Insurance } & \\\hline\end{array}$$

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Definitions:

Maslow's Need Hierarchy

A psychological theory proposed by Abraham Maslow that categorizes human needs into a five-tier model, in ascending order from basic to more complex needs.

Productivity

The measure of efficiency of a person, machine, system, etc., in converting inputs into useful outputs.

Non-profit Organization

is an entity that operates for a collective, public, or social benefit, rather than to generate profit for owners or shareholders.

Progression Principle

A concept in fitness and training that advocates for the gradual increase of the intensity, duration, and frequency of exercise for improved results.