Which of the Following Would Be Added to Net Income

question 52

Multiple Choice

Which of the following would be added to net income when using the indirect approach to prepare the cash from operating activities of the Statement of Cash Flows?

• A)increase in inventory
• B)gain on sale of investments
• C)decrease in wages payable
• D)decrease in accounts receivable

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Definitions:

Observers

Individuals who watch or notice something or someone, commonly used in the context of scientific research or social studies.

Situational Causes

Refers to factors or conditions within a context that influence events or outcomes.

Personal Causes

Individual factors or motivations that drive a person's actions, behaviors, or decisions, reflecting their personal values and goals.

Subordinate

An individual within an organization or relationship who holds a lower rank or position compared to others, often subject to the authority of a supervisor.