If the Indirect Method Is Used to Prepare a Statement

question 147

Multiple Choice

If the indirect method is used to prepare a statement of cash flows,which of the following would be added to net income to arrive at net cash flows from operating activities?

• A)Amortization expense.
• B)Depreciatione expense.
• C)Loss on sale of land.
• D)All of these choices.

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Definitions:

Right-Hand/Left-Hand Chart

A visual tool used to analyze the workflow and ergonomics in tasks, indicating actions done by the right and left hands to improve efficiency and reduce fatigue.

Idle Time

Periods when resources, such as machinery or employees, are available but not in use due to a lack of work or inefficient scheduling.

Kanbans

Signaling systems used in just-in-time (JIT) production processes to regulate the flow of materials between different stages of production.

Andons

Visual feedback systems used in manufacturing to alert about any status changes in production, such as issues or slowdowns.