Which Statement Is False Regarding the Preparation of the Indirect

question 60

Multiple Choice

Which statement is false regarding the preparation of the indirect method of the statement of cash flows? 

• A) An increase in merchandise inventory is subtracted from net income.
• B) Depreciation expense is added to net income.
• C) An increase in accounts receivable is added to net income.
• D) An increase in accounts payable is added to net income.

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Definitions:

Urban Space

Areas within cities or towns that are developed and managed for use by the public, including streets, parks, and commercial zones.

Demographic Transition Theory

A theory that describes the transition of a society from high birth and death rates to low birth and death rates as part of economic development.

European Population

Refers to the inhabitants of Europe, a continent with diverse cultures, languages, and nations.

Urban Life

It describes the lifestyle, conditions, and characteristics of living in a city or metropolis, including higher population density, diverse cultures, and advanced infrastructure.