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

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


Answer: D

Business

You might also like to view...

Questions that prespecify the set of response alternatives and the response format are called structured questions

Indicate whether the statement is true or false

Business

Forecasters view demand as a combination of ______.

a. direct and indirect variations b. seasonal and cyclic variations c. predictable and random variations d. regular and irregular variations

Business

Discuss the important differences between economies of scale and learning effects.

What will be an ideal response?

Business

Which of the following statements about self-insurance is (are) true? I. It is a form of planned retention. II. State law usually prohibits its use for workers compensation

A) I only B) II only C) both I and II D) neither I nor II

Business