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When a statement of cash flows is prepared using the indirect method: Select one: a . Net income is the starting point in determining cash
When a statement of cash flows is prepared using the indirect method:
Select one:
a Net income is the starting point in determining cash flows from operations
b Cash paid for dividends is not included
c Cash received for issuing common stock would be added in the Investments section
d Depreciation is subtracted in the Operations section
The statement of cash flows indirect method would disclose the purchase of Treasury Stock:
Select one:
a In the financing activities section
b In the investing activities section
c In the operating activities section
d In the production section
If the indirect method is used to prepare a statement of cash flows, which of the following would be added to net income to arrive at net cash flows from operating activities?
a Decrease in accounts payable
b Increase in inventory
c Increase in prepaid expenses
d Decrease in accounts receivable
Assuming that the indirect method is used, which of the following would be deducted from net income to arrive at net cash flows from operating activities?
a Cash received from fixed asset sale
b Depreciation Expense
c Gain on Disposal of Equipment
d Increase in Unearned Revenue
e Cash dividends paid
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