Which of the Following Is an Adjustment That Would Need

question 17

Multiple Choice

Which of the following is an adjustment that would need to be made to net income when calculating cash flows from operations under the indirect method?

• A) Subtract depreciation expense
• B) add depreciation expense
• C) add an increase in accounts receivable
• D) add a decrease in accounts payable

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Definitions:

Projection Systems

Tools or methodologies utilized for forecasting future trends, demand, or outcomes based on current or historical data.

Schedule

A detailed plan that outlines the timing and sequence of tasks, activities, or operations, typically used to ensure work is completed in an organized manner.

Cycle Times

The total time from the beginning to the end of a process, including both processing and waiting times, aiming to measure efficiency.