Which of the Following Statements Does Not Correctly Describe an Adjustment

question 95

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 wages payable will be added to net income.
• B)A gain on the sale of a depreciable asset will be subtracted from net income.
• C)An increase in prepaid expenses will be subtracted from net income.
• D)An increase in income taxes payable will be subtracted from net income.

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Definitions:

Small Intestine

A part of the digestive system where most of the digestion and absorption of nutrients takes place, extending from the stomach to the large intestine.

Secretin

A hormone produced by the small intestine that stimulates the pancreas to release bicarbonate-rich fluid, aiding digestion.

Pancreatic Duct

A conduit through which digestive enzymes from the pancreas are transported to the small intestine.

Pancreatic Acinar Cells

The cells in the pancreas that produce digestive enzymes, which are secreted into the small intestine.