Each of the Following Is Added to Net Income in Computing

question 108

Multiple Choice

Each of the following is added to net income in computing net cash provided by operating activities except

• A) amortization expense.
• B) an increase in accrued expenses payable.
• C) a gain on sale of equipment.
• D) a decrease in inventory.

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Definitions:

Central Authority

A governing body or organization that holds the primary power and control over a specified collective or region, often tasked with decision-making and regulation duties.

Production Frontier

Also known as the production possibility frontier, it illustrates the maximum possible output combinations of two goods or services a business can achieve with its current resources and technology.

Market System

A system where economic decisions and the pricing of goods and services are guided purely by the interactions of a country's individual citizens and businesses.

Centrally Planned System

An economic system in which decisions about production and distribution are made by a centralized authority rather than by market forces.