Which Statement Regarding the Indirect Method Is False

question 47

Multiple Choice

Which statement regarding the indirect method is false?

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

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Definitions:

Normal Distribution

A symmetric, bell-shaped distribution of values in which the mean, median, and mode are all equal and located at the center of the distribution.

Standard Deviation

Standard deviation is a measure of the amount of variation or dispersion of a set of values; a low standard deviation indicates that the values tend to be close to the mean, while a high standard deviation indicates that the values are spread out over a wider range.

Mean High Temperature

The average of the highest temperatures recorded over a specific period.

Normal Distribution

A bell-shaped probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.