Assume the Indirect Method Is Used to Compute Net Cash

question 148

Multiple Choice

Assume the indirect method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Increase in Prepaid Expenses-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:

Operating System

System software that manages computer hardware, software resources, and provides common services for computer programs.

Point-and-click Technology

User interface design that allows interactions with a computer by pointing and clicking with a mouse or other pointing device.

Interface

The point of interaction or communication between a user and a computer system, often referring to the visual layout and design through which users interact with software or hardware.

Natural Language Processing

A branch of artificial intelligence concerned with enabling computers to understand, interpret, and generate human language in a valuable way.