Which of the Following Is Added to Net Income When

question 72

Multiple Choice

Which of the following is added to net income when computing net cash from operating activities under the indirect method?

• A) increase in income tax payable
• B) increase in deferred tax asset
• C) decrease in deferred tax liability
• D) increase in income tax expense

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Definitions:

Net Operating Income

The total profit a company makes from its operations, excluding taxes and interest.

Fixed Monthly Expenses

Recurring expenses that do not vary in amount each month, such as rent or mortgage payments.

Net Operating Income

Earnings from a company's everyday business operations, excluding extraordinary items and other non-operating expenses.

Marketing Manager

A marketing manager is a professional responsible for developing, implementing, and executing strategic marketing plans for an entire organization or lines of business to attract potential customers and retain existing ones.