When Using the Indirect Method to Calculate and Report Net

question 58

Multiple Choice

When using the indirect method to calculate and report net cash provided or used by operating activities,which of the following is subtracted from net income?

• A)Decrease in income taxes payable.
• B)Depreciation expense.
• C)Amortization of intangible assets.
• D)Bad debts expense.
• E)Decrease in merchandise inventory.

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Definitions:

Inductive Reactance

A measure of the opposition by an inductor to changes in current, dependent on frequency.

Inductance

A property of an electrical conductor by which a change in current in the conductor induces an electromotive force in both the conductor itself and in any nearby conductors by mutual inductance.

Voltage Drop

Voltage drop is the reduction in electrical potential across a component or conductor in an electrical circuit as current flows through it.

RLC Series Circuit

An RLC series circuit is an electrical circuit consisting of a resistor (R), an inductor (L), and a capacitor (C) connected in series, exhibiting both resistive and reactive properties.