In Converting Net Income to Net Cash Provided by Operating

question 55

Multiple Choice

In converting net income to net cash provided by operating activities under the indirect method:

• A) decreases in accounts receivable and increases in prepaid expenses are added.
• B) decreases in inventory and increases in accrued liabilities are added.
• C) decreases in accounts payable and decreases in inventory are deducted.
• D) increases in accounts receivable and increases in accrued liabilities are deducted.

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Definitions:

Resilience

The capacity to recover quickly from difficulties; toughness or the ability to bounce back from adverse events.

Coronary Heart Disease

A disease characterized by the narrowing or blockage of the coronary arteries, usually due to atherosclerosis, which can lead to heart attacks.

Competitive

Characterized by or involving rivalry between parties, each striving to outdo the other to achieve a goal or win a prize.

Aggressive

Exhibiting behavior that is assertive, often hostile, with the intention to dominate.