Amortization Is Added Back to Net Income in a Statement

question 70

Multiple Choice

Amortization is added back to net income in a statement of cash flows prepared using the indirect method because it:

• A)reduces income but not cash.
• B)is a cash inflow.
• C)is a revenue.
• D)is a valuation concept.

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Definitions:

Orthostatic Hypotension

A form of low blood pressure that happens when standing up from sitting or lying down.

Hypotension

Abnormally low blood pressure, which might cause symptoms of dizziness or fainting.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, a critical parameter in assessing cardiovascular health.

Pulse Pressure

The difference between the systolic and diastolic blood pressure readings, which can provide insights into the health of the cardiovascular system.