Assume the Indirect Method Is Used to Compute Net Cash

question 99

Multiple Choice

Assume the indirect method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Dividend Income (assume that cash received is equal to amount reported) -indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:

• A)Add to net income to arrive at net cash flows from operating activities.
• B)Subtract from net income to arrive at net cash flows from operating activities.
• C)Not used to adjust net income to calculate net cash flows from operating activities.

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Definitions:

Kant

A philosopher known for his work in ethics, epistemology, and other fields of philosophy; not directly related to a legal or technical term.

Intuitionism

A philosophical theory emphasizing that moral truths are known through intuition, denying that moral properties are reducible to natural properties.

Rational Persons

Individuals who use reason and logic to make decisions, typically in economic theory, assuming that people aim to maximize their self-interest.

Correctness

The quality or state of being free from errors, inaccuracies, or faults.