If a company uses the indirect method to report cash flows, it
A) subtracts any increase in its accrued pension cost from net income.
B) subtracts any increase in accrued pension cost as an investing activity.
C) adds any increase in its accrued pension cost to net income.
D) adds any increase in accrued pension cost as a financing activity.
C
You might also like to view...
Prepare a horizontal analysis of the comparative balance sheet of Michelle, Inc. (Round to one decimal place.)
Data for Michelle, Inc. follow:
Destruction of the subject matter has what effect on the offer?
a. The offer is terminated. b. The offer is delayed until additional subject matter can be located. c. This creates an impossibility of fact that does not terminate the offer. d. The offer is merely delayed under the "Hardship Rule."
Which of the following is a plausible explanation for a large increase in the number of days outstanding in inventory?
A. Obsolete inventory. B. New product line where sales exceed production. C. Manufacturing overhead was not allocated to the production process. D. Manufacturing salaries were recorded as administrative expenses.
Kipp, a U.S. shareholder under the CFC provisions, owns 40% of a CFC. If the CFC's Subpart F income for the taxable year is $200,000, Kipp is taxed on receipt of a constructive dividend of $80,000
a. True b. False Indicate whether the statement is true or false