Which of the Following Would Not Be an Adjustment to Net

question 111

Multiple Choice

Which of the following would not be an adjustment to net income using the indirect method?

• A)Depreciation expense
• B)An increase in prepaid expenses
• C)Amortization expense
• D)An increase in land

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Definitions:

Probable Cause

Probable cause is a legal standard that requires a reasonable basis for believing that a crime has been committed or that certain property is connected with a crime, used as a criterion for lawful search and arrest.

Merchants

Individuals or entities engaged in the buying and selling of goods or services for profit.

Conversion

The unauthorized act of possessing or using someone else's property as if it were one's own, which interferes with the owner's rights.

Dominion

Supreme authority or control over a domain, or the ownership and absolute right to use, enjoy, and dispose of property.