Consider the Following Items: How Many of These Items Would

question 8

Multiple Choice

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

• A)5
• B)4
• C)1

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Definitions:

Future Generations

Individuals who will live in the succeeding periods, whose interests are considered in long-term planning and sustainability efforts.

Eco-Efficiency Measure

An assessment of the economic performance of a process or product in terms of its environmental impacts, aiming for sustainability by reducing resources used and waste produced.

Material Price Efficiency

Material price efficiency is a measure of how effectively a business acquires its materials at a cost equal to or less than the standard or expected cost.

Energy Efficiency

The goal to reduce the amount of energy required to provide products and services.