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:

Closed Questions

Questions designed to elicit a specific, limited response, often "yes" or "no," rather than open-ended discussion.

Pre-test

An initial evaluation or examination conducted before a main test or experiment, used to assess suitability, effectiveness, or gather preliminary data.

Adequate

Sufficient in quantity or quality to meet a certain standard or requirement.

Convergent Questions

Questions designed to elicit a specific, narrow response, typically used to confirm details or clarify points.