In preparing a statement of cash flows (indirect method), cash flows from operating activities
a. is calculated as the difference between revenues and expenses plus the beginning cash balance.
b. is always equal to the sum of cash flows from investing activities and cash flows from financing activities.
c. can be calculated by appropriately adding to or deducting from net income those items in the income statement that affect cash and accruals for current assets and current liabilities.
d. can be calculated by appropriately adding to or deducting from net income those items in the income statement that do not affect cash.
D
You might also like to view...
Which of the following is the main advantage of radio as an advertising medium?
A) low competition B) more attention than television C) longer duration of ad exposure D) flexibility E) standardized rate structures
When a lumber company takes timber and converts it into lumber, cardboard, and other paper products, the company is using
A. an analytical process. B. extraction manufacturing. C. a synthetic process. D. an operations process. E. raw processing.
Just as it is a good idea to plan financially it is a good idea to plan for what?
A) College B) Investing C) Retirement D) A career E) Kids
The S&P 500 Index is priced at $950.46. The annualized dividend yield on the index is 1.40%. What is the price of a 6-month prepaid forward contract on the S&P 500 Index?
A) $943.83 B) $950.00 C) $964.26 D) $984.21