Which of the Following Would Be Added to Net Income

question 34

Multiple Choice

Which of the following would be added to net income in computing cash flows from operating activities?

• A)an increase in accounts receivable
• B)an increase in inventories
• C)a decrease in deferred taxes payable
• D)a decrease in prepaid expenses

Analyze and adjust factory overhead accounts, including underapplied or overapplied overhead.

Differentiate between period costs and product costs in a manufacturing business.

Understand the roles of various inventories in a manufacturing business, including direct materials, work in process, and finished goods.

Recognize the significance of labor costs in job order costing, including the distinction between direct labor and indirect labor.

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Definitions:

Landlord

A landlord is an individual or entity that owns and rents out property, such as apartments or offices, to tenants in exchange for rent.

Writing

The representation of language in a textual medium through the use of set characters.

Lease Term

The duration for which a lease agreement remains effective, typically stated in months or years.

Constructive Eviction

An eviction that occurs when a property has become unsuitable for use due to the unlivable quality of the property.