Which of the Following Adjustments to Convert Net Income to Net

question 40

Short Answer

Which of the following adjustments to convert net income to net cash provided by operating activities is correct? $$\begin{array} { l c c } & \text { Add to Net Income } & \text { Deduct from Net Income } \\\text { a. Accounts Receivable } & \text { increase } & \text { decrease } \\\text { b. Prepaid Expenses } & \text { increase } & \text { decrease } \\\text { c. Inventory } & \text { decrease } & \text { increase } \\\text { d. Taxes Payable } & \text { decrease } & \text { increase }\end{array}$$

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Definitions:

Innate Releasing Mechanisms

Biological processes or structures that trigger specific behaviors in response to certain stimuli.

Environmental Stimuli

External factors or conditions in the environment that can elicit responses or reactions from organisms.

William McDougall

A psychologist known for his work in social psychology and the concept of instinct theory of motivation.

Instincts

Innate, fixed patterns of behavior in response to specific stimuli.