Which of the Following Would Be Subtracted from Net Income

question 76

Multiple Choice

Which of the following would be subtracted from net income when determining cash flows from operating activities under the indirect method?

• A)An increase in accounts payable.
• B)Depreciation expense.
• C)A decrease in prepaid insurance.
• D)A gain on the sale of a depreciable asset.

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Definitions:

Conclusion

A proposition whose truth an argument seeks to establish.

Proposition

A pronouncement that indicates a viewpoint or judgment.

Premises

Statements or ideas on which an argument or inference is based or from which a conclusion is drawn.

Conclusion

The final part of something, such as an argument or text, summarizing or deducing the outcomes based on the preceding information.