Which of the Following Is Subtracted from Net Income Under

question 8

Multiple Choice

Which of the following is subtracted from net income under the indirect method to determine net cash provided/(used) by operating activities?

• A)Loss on sale of equipment
• B)Decrease in prepaid insurance
• C)Increase in merchandise inventory
• D)Increase in accounts payable

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Definitions:

Market Equilibrium

A market state where the supply of an item is exactly equal to its demand, leading to a stable price.

Opportunities

Situations that present possibilities for achieving positive outcomes or advantages.

Constraints

Limitations or restrictions that affect decision-making or the ability to pursue certain actions.

Economic Beings

Individuals or entities that make decisions based on the maximization of utility or profit, considering factors like scarcity, resources, and preferences.