In preparing a statement of cash flows using the indirect method, a decrease in an unearned revenue account should
A) be shown as a financing activity.
B) be shown as a deduction from net income in computing net cash flows from operating activities.
C) not be shown on the statement of cash flows.
D) be shown as an addition to net income in computing net cash flows from operating activities.
B
You might also like to view...
The owners and managers need the financial information of a company in order to
A. grant loans B. issue credit C. collect taxes D. make decisions
After creating a product prototype, a company tests it within the firm to see how it performs in different applications. The company refines the prototype to correct the mistakes found in in-house testing. What should be the next step?
A) commercializing the product B) performing concept testing C) conducting beta testing with customers D) creating a marketing strategy for the product E) performing business analysis