When Using the Indirect Method to Prepare the Statement of Cash

question 2

Multiple Choice

When using the indirect method to prepare the statement of cash flows, a decrease in current liabilities is:

• A)subtracted from current assets in the cash flows from financing activities section.
• B)subtracted from net income in the cash flows from operating activities section.
• C)added to net income in the cash flows from operating activities section.
• D)added to inventory purchases in the cash flows from investing activities section.

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Definitions:

Economic Growth

An increase in the production of goods and services over a specific period, often measured by the gross domestic product (GDP).

Economic Plight

A situation of significant financial difficulty or distress affecting an individual, group, or broader community.

Black America

Refers to African American communities and individuals in the United States, emphasizing their cultural, historical, and social experiences.

Consumer Choice

The freedom of consumers to decide what goods or services to purchase among different options available in the market.