Which of the Following Adjustments to Convert Net Income to Net

question 141

Short Answer

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

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Definitions:

Encouragement

The action of giving someone support, confidence, or hope to motivate or positively influence them.

Self-regulation

The ability of an individual to manage their emotions, thoughts, and behaviors in accordance with long-term goals.

Directing

In management, the process of guiding, leading, and overseeing the tasks and activities of an organization or team to achieve predetermined objectives.

Controlling

Exerting undue influence or dominance over persons or situations, often resulting in a lack of autonomy or freedom for those being controlled.