Which of the Following,under the Indirect Method,is Not a Proper

question 78

Multiple Choice

Which of the following,under the indirect method,is not a proper adjustment to net income to arrive at net cash flow from operations?

• A)Adding a decrease in inventory
• B)Adding an increase in salaries payable
• C)Adding an increase in prepaid expense
• D)All are proper adjustments to net income.

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Definitions:

Collective Bargaining

The negotiation process between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, and other aspects of workers' compensation and rights.

Unilateral Change

Actions taken by an employer to alter terms of employment (such as wages, hours, or duties) without negotiation with the employees or their representatives.

Permissive Items

Items in collective bargaining that can be negotiated, but are not mandatory to include in agreements.

NLRB

The National Labor Relations Board, a federal agency in the United States responsible for enforcing US labor law in relation to collective bargaining and unfair labor practices.