Which of the Following Adjustments to Net Income Is NOT

question 4

Multiple Choice

Which of the following adjustments to net income is NOT correct if you are trying to calculate cash flow from operating activities?

• A)Add increases in accounts payable
• B)Add back depreciation
• C)Add increases in accounts receivable
• D)Deduct increases in inventory

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Definitions:

Automatic Processing

The subconscious and effortless processing of information, which enables people to perform tasks without actively thinking about them.

Encode

The process of converting information into a particular form for efficient storage, processing, or transmission.

Explicit Memory

A type of long-term memory that involves conscious recall of facts and events.

Betsy Ross

Traditionally credited with sewing the first American flag, she is a symbolic figure in American history.