Consider the Following Items: How Many of These Items Would

question 79

Multiple Choice

Consider the following items: How many of these items would be added to net income when using the indirect method to prepare the operating activities section of the statement of cash flows?
$\begin{array}{|l|l|}\hline \text { (a) Decrease in accounts receivable } & \text { (f) Gain on the sale of equipment } \\\hline \text { (b) Issuance of common stock } & \text { (g) Depreciation expense } \\\hline \text { (c) Increase in interest receivable } & \text { (h) Payment of dividends } \\\hline \text { (d) Purchase of land } & \text { (i) Decrease in utilities payable } \\\hline \text { (e) Decrease in accounts payable } & \text { (j) Increase in inventory }\\\hline \end{array}$

• A)2
• B)4
• C)1

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Definitions:

Categorical Variables

Variables that represent categories and can take on a limited and usually fixed number of possible values, distinguishing items by non-numeric attributes.

Chi-square Statistic

A measure used in statistics to evaluate the goodness of fit between observed frequencies and expected frequencies in categorical data.

Personal Goals

Objectives or targets set by an individual aiming to achieve personal development or accomplishment.

Expected Cell Counts

Predicted frequencies in cross-tabulation tables that are used in statistics to calculate the expected value under the null hypothesis in chi-squared tests.