Which of the Following Is True of Setting Up the Negative

question 62

Multiple Choice

Which of the following is true of setting up the negative news in an indirect-order message?

• A) You should not cushion the message's main negative point.
• B) You could cite the expert opinion of authorities whom both you and your reader respect.
• C) You should directly deliver the message without explanation.
• D) You could express yourself in a blunt manner to the reader.
• E) You must never offer an alternative solution to the reader.

Distinguish between cash flows from operating activities and other adjustments.

Recognize the effect of accounts receivable, inventory, and accounts payable changes on cash flow.

Calculate net cash flow given a set of transactions.

Understand the final steps in preparing a statement of cash flows, including adjustments and listing non-cash activities.

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Definitions:

Allowance for Doubtful Accounts

An accounting entry known as a contra-asset account that predicts the amount of accounts receivable that might be uncollectible.

Realizable Value

The estimated amount for which an asset can be sold, minus any selling costs, at a given point in time.

Materiality Constraint

An accounting principle that allows for the ignoring of accounting information that would not impact users’ decision-making due to its insignificance.

Factoring Accounts Receivable

The financial practice of selling accounts receivable to a third party at a discount to obtain immediate cash.