Assume the Indirect Method Is Used to Compute Net Cash

question 74

Multiple Choice

Assume the indirect method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Gain on Sale of Investment-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:

Evaluation System

A structured approach to assess the performance and effectiveness of employees, projects, or processes.

Goal Setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives to be accomplished.

Job Characteristics Approach

A theory that suggests jobs can be designed with specific characteristics to increase employee motivation and satisfaction.

Feedback

Information given to a person or group about their behavior, performance, or product, used as a basis for improvement.