When Preparing a Statement of Cash Flows Using the Indirect

question 131

Multiple Choice

When preparing a statement of cash flows using the indirect method,each of the following should be classified as an operating cash flow except:

• A)An increase in accounts receivable.
• B)A decrease in accounts payable.
• C)Proceeds from the disposal of a long-term asset with no gain or loss.
• D)An increase in prepaid expenses.
• E)A decrease in accrued expenses payable.

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Definitions:

360-degree Feedbacks

A performance appraisal method that collects feedback from all directions: supervisors, peers, subordinates, and sometimes external sources like customers.

Reinforcements

In behavioral psychology, stimuli which, when presented after a behavior, increase the likelihood of that behavior being repeated.

Deficiencies

The absence or lack of necessary qualities, skills, or resources.

Positive Consequence

A beneficial result or effect of an action or decision, often used to encourage desirable behaviors.