An Increase in the Accumulated Depreciation Account of $50,000 Over

question 68

Multiple Choice

An increase in the accumulated depreciation account of $50,000 over the course of a year would be shown on the company's statement of cash flows prepared under the indirect method as:

• A) an addition to net income of $50,000 in order to arrive at net cash provided by operating activities.
• B) a deduction from net income of $50,000 in order to arrive at net cash provided by operating activities.
• C) an addition of $50,000 under investing activities.
• D) a deduction of $50,000 under investing activities.

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Definitions:

Linear Trend Line

A straight line that best represents the data on a scatter plot, showing the direction and rate of a variable's change over time.

Holiday Hours

The specific hours of operation for businesses or institutions during holiday periods, which may differ from regular hours.

Trend Analysis

The practice of collecting data and attempting to spot a pattern, often used in technical analysis to predict future movements based on past trends.

Seasonal Variation

Periodic fluctuations in data or statistics that recur in a consistent pattern each year within the same period.