Which of the Following Adjustments Would NOT Be Made to Net

question 51

Multiple Choice

Which of the following adjustments would NOT be made to net income when computing cash from operating activities?

• A) add an increase in Accounts Payable
• B) add depreciation expense
• C) add an increase in Accounts Receivable
• D) subtract the gain on sale of land

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Definitions:

Merchandising

The practice of promoting the sale of goods, often by their presentation in retail outlets.

Merchandiser

A person or company responsible for the promotion and sale of products, often in retail environments.

Low-margin Products

Products that generate a small profit margin, typically because of low prices relative to the cost of goods sold.

Specialty Store

A store that concentrates on selling one line of goods or services and carries a narrow but deep merchandise assortment.