A Company That Had a $500 Decrease in Accounts Receivable

question 65

Multiple Choice

A company that had a $500 decrease in accounts receivable during a period would do which of the following on its statement of cash flows prepared using the indirect method?

• A)Add the $500 to net income in order to arrive at net cash provided by operating activities.
• B)Subtract the $500 from net income in order to arrive at net cash provided by operating activities.
• C)Add the $500 to the net cash provided by investing activities.
• D)Add the $500 to the net cash provided by financing activities.

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Definitions:

Broca's

Related to an area in the frontal lobe of the dominant hemisphere (usually the left) of the brain, involved in language processing, speech production, and comprehension.

Wernicke's

Refers to Wernicke's area, a region in the brain associated with understanding spoken language.

Receptive

Being open and responsive to ideas, stimuli, or inputs from the external environment.

Visual Agnosia

A neurological disorder characterized by the inability to recognize or understand visual information despite having normal eyesight.