When preparing a statement of cash flows using the indirect method, why is depreciation added back to net income within the operating activities section?
The indirect method begins with net income based on accrual accounting. This includes a legitimate deduction for depreciation expense. However, depreciation expense does not represent a cash outflow and thus must be added back to net income to cancel the deduction. As a result depreciation is excluded from the net cash flows from operating activities.
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Some global marketers make the strategic decision to establish a presence on the Web without offering transaction opportunities even though the product could be sold that way. Such sites are known as:
A) company sites. B) transaction sites. C) promotion sites. D) content sites. E) cyber sites.
Transactional leadership ______.
A. is not a very common leadership style B. is found in the bulk of leadership models C. is less commonly used than transformational leadership D. is used only in military leadership
To design processes for services, the operations manager must understand the degree of ______.
A. customer interaction when performing the service B. customization needed to satisfy the supplier C. compliance with government regulations required D. compliance with ISO requirements needed
Which of the following is a company that purchases raw materials and transforms it into a finished product?
a. Manufacturing company b. Service company c. Merchandising company d. Wholesale company