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:

Lenin

A Russian revolutionary leader, political theorist, and founder of the Soviet Union, who played a key role in the Bolshevik Revolution of 1917.

Revolutionary Party

A political party that seeks to implement radical changes in society and governance, often through revolutionary means.

French Third Republic

Denotes the republican government of France from 1870, after the fall of the Second Empire, to 1940, when France was occupied by Nazi Germany during World War II.

Royalists

Royalists are supporters of a king or royal government, especially in the context of civil wars or revolutions where monarchy is challenged.