Under the Indirect Method, Which of the Following Would Be

question 19

Multiple Choice

Under the indirect method, which of the following would be subtracted from net income when determining net cash flows from operations?

• A) gain on the sale of a used truck
• B) amortization expense
• C) decrease in prepaid rent
• D) increase in salaries payable

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Definitions:

Preschool

An educational establishment or learning space offering early childhood education to children prior to the commencement of compulsory education at primary school.

HOTV Chart

A vision testing chart used primarily for children, featuring the letters H, O, T, and V to assess visual acuity.

Visual Acuity

The clarity or sharpness of vision, often measured with an eye chart to assess how well an individual can see at various distances.

Infant

A child in the earliest period of life, especially before they can walk or talk.