The First Line Item in the Operating Activities Section for a Statement

question 112

Multiple Choice

The first line item in the operating activities section for a statement of cash flows prepared using the indirect method is:

• A) Cash.
• B) Cash received from customers.
• C) Increase (decrease) in accounts receivable.
• D) Income.
• E) Adjustments to net income.

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Definitions:

Phalanges

The skeletal components located in the digits of humans and other vertebrates.

Carpals

The eight small bones that make up the wrist that connect the hand to the forearm.

Metacarpals

The five long bones found in the hand between the wrist (carpals) and the fingers (phalanges), making up the palm.

Phalanges

The skeletal structures found within human fingers and toes.