To Convert Information from Your Income Statement to Your Cash

question 26

Multiple Choice

To convert information from your income statement to your cash flow statement,which of the following would you NOT do?

• A) Take your net profit and add back depreciation.
• B) Add increases in accounts receivable.
• C) Subtract increase in inventory.
• D) Add increases in accounts payable.
• E) Subtract decrease in notes/loans payable.

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Definitions:

Monitors

Devices or people appointed to observe, check, and keep a continuous record of a process or situation.

Managers

Individuals responsible for controlling or administering all or part of a company or similar organization.

Middle-school/junior-high

Educational institutions that provide schooling for preteen and early teenage students, often encompassing grades 6 through 8.

Early-childhood

A period in human development from birth up to approximately 8 years, characterized by rapid physical and mental growth.