Question: X Your answer is incorrect. When using the indirect method to prepare the operating section of a statement of cash flows, which of the following

X Your answer is incorrect. When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is deducted fron net income to compute cash provided by/used by operating activities? decrease in accounts receivable gain on sale of land amortization of patent all of the choices are correct

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

when applying the indirect method to prepare the operating section of cash flows, an increase in accounts recievable is deducted from net income because

1. If an investor owns less than 20% of the common stock of another corporation as a long-term investment, a. the equity method of accounting for the investment should be employed. b. no dividends...

9) In a statement of cash flows, the cash flows from investing activities section should report A) the factoring of accounts receivable B) a major overhaul of equipment C) stock dividends received D)...

14. The primary purpose of the statement of cash flows is to provide information A) about the entity's ability to meet its obligations and to pay dividends B) about the operating investing and...

xYZ Corp Income Statement For the year ended December 31, 2010 Sales Cost of goods sold Gross profit $6,000,000 2,600,000 expenses Selling expenses 800,000 400,000 Administrative expenses Operating...

10) A declaration of a cash dividend is a financing activity whereas a declaration of stock dividend is ignored on a statement of cash flows. (answer True or False) 11) When preparing a statement of...

When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is added to net income to compute cash provided/used by operating activities? a....

19. When preparing a statement of cash preparing a statement of cash loan (indirect methodl, which of the following is Hot an adjustm adjustment to reconcile net income to be cash vided by operating...

a. Five items b. Three items c. Four items d. Two items 20. A 30% stock dividend is reported in connection with a statement of cash flows as: A. A financing activity. B. An investing activity C. A...

Part I 1) On January 1, 2021, Golden Company acquires $400,000 of ABC Company's 10- year, 6% bonds at a price of $460,000 to yield 4%. Interest is payable each December 31. The bonds are classied as...

2. Use the table below to answer the following questions for an Amazon option Expiration Feb-23 Feb-23 Feb-23 Strike Call Premium Put Premium 110 $ 4.50 $ 115 $ 2.55 $ 120 $ 1.34 $ 4.35 7.55 11.20 a....

Company X has a policy for firing employees that is based on the payment of unemployment taxes. The company knows that employers pay employment taxes on the first $7,000 of each employee's annual...

The executor of Rose Shield s estate listed the following properties ( at fair value ) : Cash$ 3 6 0 , 0 0 0 Life insurance receivable 2 6 0 , 0 0 0 Investments in stocks and bonds 1 6 0 , 0 0 0...

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

design a simple performance appraisal system

2. What are the main advantages and disadvantages of using 360 degree appraisal?

4. How can social media be used to check a candidates experience and qualifications?