Which of the Following Statements Does Not Correctly Describe an Adjustment

question 67

Multiple Choice

Which of the following statements does not correctly describe an adjustment to net income when determining cash flows from operating activities using the indirect method?

• A)An increase in accounts receivable will be subtracted from net income.
• B)A loss on the sale of a depreciable asset will be added to net income.
• C)An increase in accrued liabilities will be subtracted from net income.
• D)An increase in accounts payable will be added to net income.

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Definitions:

Social Facilitation

The phenomenon where an individual's performance is enhanced when they are in the presence of others.

Performing With Others

The act of engaging in tasks or activities in the presence of, or in collaboration with, other people.

Western Cultures

Societies that are often characterized by individualism, a strong emphasis on personal freedom, and democratic values.

East Asian

Referring to the geographical region or people from countries in the eastern part of Asia, such as China, Japan, and Korea.