When Using the Indirect Method of Preparing a Statement of Cash

question 49

Multiple Choice

When using the indirect method of preparing a statement of cash flows, which of the following items would need to be added to net income in order to reconcile to cash provided by operating activities?

• A) Increase in accounts receivable
• B) Decrease in liabilities
• C) Depreciation expense
• D) Increase in long-term loan

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Definitions:

Males

Refers to the male gender or sex, typically used in studies or statistics to denote participants or subjects that are biologically male.

Females

Females refer to the sex of an organism, or a part of an organism, that produces non-mobile ova (egg cells) and can typically bear offspring or produce seed.

Exam Mean

The average score obtained by all the examinees in an examination.

Midpoint

Refers to the exact middle point in a range of values, often calculated as the average of two extreme values in a set.