In Preparing a Statement of Cash Flows Under the Indirect

question 117

Multiple Choice

In preparing a statement of cash flows under the indirect method,an increase in accounts payable would be reported 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.

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Definitions:

Bay Of Pigs Invasion

A failed military invasion of Cuba in 1961 by a CIA-sponsored paramilitary group, aiming to overthrow Fidel Castro's government.

Groupthink

The tendency among individuals in a group to prioritize agreement over critical thinking, leading to results in decision-making that are flawed or unwise.

Risky Shift

The phenomenon where a group collectively agrees on a course of action that is more extreme than they would have made individually.

Groupthink

In team environments, a pattern where the drive for cohesive thinking or obedience culminates in choices that are misguided or harmful.