Which of the Following Is a Deduction from Net Income

question 3

Multiple Choice

Which of the following is a deduction from net income when using the indirect approach to prepare the cash from operating activities of the Statement of Cash Flows?

• A)increase in accounts payable
• B)increase in prepaid expenses
• C)loss on sale of investments
• D)depreciation expense

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Definitions:

Perpetrator

An individual who commits a harmful, illegal, or immoral act.

Shared Goals

Objectives or aims pursued collectively by a group or team, fostering collaboration and united effort towards achievement.

Spend More Time Together

Actively allocating increased durations for engagement and interaction with another person or group.

Commitment

The quality of being dedicated to a cause, activity, or relationship, showing willingness to give time and energy to something believed in.