In Preparing a Statement of Cash Flows Under the Indirect

question 132

Multiple Choice

In preparing a statement of cash flows under the indirect method,a decrease in accounts receivable would be reported or included as a(n) :

• A)Addition to net income in the operating activities section.
• B)Deduction from net income in the operating activities section.
• C)Financing activity.

Understand the characteristics and preferences of individuals based on their dominant needs according to acquired needs theory.

Grasp the concept of ERG theory and how it compares to Maslow's hierarchy.

Comprehend the distinction between hygiene factors and motivational factors in Herzberg's two-factor theory.

Appreciate the cultural and situational variations in the applicability of motivation theories.

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Definitions:

Unit Product Cost

The comprehensive expenditure involved in creating a single product unit, encompassing direct materials, direct labor, and assigned overhead costs.

Absorption Costing

A method in accounting that integrates every manufacturing expense – direct materials, labor, and all overheads (variable and fixed) – into the product’s price.

Net Operating Income

A company's total profit from operational activities, excluding expenses related to interest and taxes.

Period Cost

Expenses that are not directly tied to production activities and are expensed in the period in which they occur.