Brighton,Inc

question 37

Multiple Choice

Brighton,Inc.,uses the indirect method to determine its net cash flow from operating activities.During the course of the year,Brighton,Inc.'s accounts receivable increased by $10,000 and its accounts payable decreased by $5,000.As a result of these two items,the calculation of cash flow from operations will be:

• A)increased by $5,000.
• B)decreased by $5,000.
• C)increased by $15,000.
• D)decreased by $15,000.

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Definitions:

Empirical Evidence

Information that is acquired by observation or experimentation, serving as a basis for knowledge or validation.

Wage Differences

Variations in compensation received by individuals for their labor, often influenced by factors such as skill level, experience, education, and geographic location.

Ability

Ability refers to the capacity or competence to perform a task or job effectively.

Effort

The amount of physical or mental energy put into a task or activity.