Krech Corporation's Comparative Balance Sheet Appears Below: the Company's

question 37

Multiple Choice

Krech Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities. Which of the following is correct regarding the operating activities section of the statement of cash flows?

• A)The change in Prepaid Expenses will be added to net income; The change in Income Taxes Payable will be subtracted from net income
• B)The change in Prepaid Expenses will be subtracted from net income; The change in Income Taxes Payable will be subtracted from net income
• C)The change in Prepaid Expenses will be subtracted from net income; The change in Income Taxes Payable will be added to net income
• D)The change in Prepaid Expenses will be added to net income; The change in Income Taxes Payable will be added to net income

---

Definitions:

Implicit Memory Loss

The deterioration of the unconscious ability to recall or recognize information, such as skills and habits.

Forgetting

The inability to retrieve information from memory over time, often due to decay or interference.

Nonsense Syllables

A set of strings of letters that do not follow the phonetic rules of any language and have no meaning, often used in memory and learning experiments.

Encoding Failure

A situation in which information does not enter the long-term memory from the short-term or working memory, often leading to forgetting.