When Preparing a Statement of Cash Flows on the Indirect

question 117

Multiple Choice

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

• A) An increase in accounts receivable.
• B) A decrease in accounts payable.
• C) A gain from disposal of a long-term asset
• D) An increase in prepaid expenses.
• E) A decrease in accrued expenses payable.

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Definitions:

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Acts of kindness beyond what is usual or expected, often performed voluntarily to help someone else.

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The specialized knowledge or skills possessed by individuals or groups within an organization, as opposed to external or outsourced expertise.

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The method of gathering information, ideas, or content by requesting input from a wide audience, particularly from those in an online community.

Clearly Stated

Explicitly articulated or expressed in a manner that leaves little to no room for misunderstanding or ambiguity.