Using the Indirect Method, Where Does the Decrease in Accounts

question 101

Multiple Choice

Using the indirect method, where does the decrease in accounts receivable appear in a consolidated statement of cash flows?

• A) $8,000 increase to net income as an operating activity.
• B) $8,000 decrease to net income as an operating activity.
• C) $6,400 increase to net income as an operating activity.
• D) $6,400 decrease to net income as an operating activity.
• E) $8,000 increase as an investing activity.

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Definitions:

Risk-To-Benefit Ratio

An assessment used to evaluate the potential risks involved in a medical treatment or procedure against the expected benefits for the patient.

Human Dignity

The intrinsic value and worth that each individual possesses, ensuring respect and ethical treatment in all aspects of life.

Human Rights

Fundamental entitlements and freedoms that every individual is guaranteed simply because they are human, irrespective of nationality, sex, ethnicity, religion, or language.