Quiz – Which of the following statements is CORRECT?

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition and 10th Edition

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Which of the following statements is CORRECT?
a. A decrease in accounts receivable is subtracted from net income in the operating activities section of the statement of cash flows.
b. Dividends do not show up in the statement of cash flows.
c. In the statement of cash flows, a decrease in accounts payable is subtracted from net income in the operating activities section.
d. Depreciation is subtracted from net income in the operating activities section in the statement of cash flows,
e. A reduction in inventories is subtracted from net income in the operating activities section of the statement of cash flows.

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