TB MC Qu. 11-92 (Static) Consider the following items: (a) Decrease in...Consider the following items:(a) Decrease in accounts receivable(b) Issuance of common stock(c) Increase in interest receivabled) Purchase of land(e) Decrease in accounts payablef) Gain on the sale of equipmentg) Depreciation expenseh) Payment of dividendsi) Decrease in utilities payablej) Increase in inventoryHow many of these items would be added to net income when using the indirect method to prepare the operating activities section of the statement of cash flows?Multiple ChoiceO 2O 4O 1O 3

The cash flow statement is part of the financial statements of the company. It is prepared at the…

B MC Qu. 11-92 (Static) Consider the following items: (a) Decrease in... Consider the following items: a) Decrease in accounts receivable b) Issuance of common stock C) Increase in interest receivable d) Purchase of land e) Decrease in accounts payable F) Gain on the sale of equipment ) Depreciation expense m) Payment of dividends ) Decrease in utilities payable ) Increase in inventory How many of these items would be added to net income when using the indirect method to prepare the operating activities section of the statement of cash flows? Multiple Choice 2 4 1 3

B MC Qu. 11-92 (Static) Consider the following items: (a) Decrease in... Consider the following items: a) Decrease in accounts receivable b) Issuance of common stock C) Increase in interest receivable d) Purchase of land e) Decrease in accounts payable F) Gain on the sale of equipment ) Depreciation expense m) Payment of dividends ) Decrease in utilities payable ) Increase in inventory How many of these items would be added to net income when using the indirect method to prepare the operating activities section of the statement of cash flows? Multiple Choice 2 4 1 3

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

TB MC Qu. 11-92 (Static) Consider the following items: (a) Decrease in...
Consider the following items:
(a) Decrease in accounts receivable
(b) Issuance of common stock
(c) Increase in interest receivable
d) Purchase of land
(e) Decrease in accounts payable
f) Gain on the sale of equipment
g) Depreciation expense
h) Payment of dividends
i) Decrease in utilities payable
j) Increase in inventory
How many of these items would be added to net income when using the indirect method to prepare the operating activities section of the statement of cash flows?
Multiple Choice
O 2
O 4
O 1
O 3

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