In a Statement of Cash Flows (Indirect Method),depreciation Is Treated

question 30

Multiple Choice

In a statement of cash flows (indirect method) ,depreciation is treated as an adjustment to reported net income because depreciation

• A) is an inflow of cash to a reserve account for asset replacement.
• B) reduces the reported net income and involves an inflow of cash.
• C) reduces the reported net income but does not involve an outflow of cash.
• D) usually represents a significant portion of operating expenses.

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Definitions:

Secondary Circular Reactions

Part of Jean Piaget's theory of cognitive development, representing repetitive behaviors in infants aimed at reproducing interesting effects in their environment.

Mental Representations

Internal images, concepts, or thoughts that stand in for objects, events, or relations in the outside world, aiding in understanding and interaction.

Goal-directed Behavior

Actions taken with the intention of achieving a specific outcome or objective, showing purpose and direction in behavior.

Object Permanence

The understanding that objects continue to exist outside of sight.