Which of the Following Should Be Deducted from Net Income

question 25

Multiple Choice

Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method?

• A) A decrease in inventory
• B) A decrease in accounts payable
• C) Preferred dividends declared and paid
• D) A decrease in accounts receivable

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Definitions:

Categorical Imperative

A fundamental principle in the ethical philosophy of Immanuel Kant that requires that individuals act in a manner in which they wish their actions to become universal laws.

Ethical Imperative

A strong moral obligation or duty which compels someone to act in a certain way based on ethical considerations.

Rational Agents

Entities capable of making decisions based on reasoning, often in the context of economic models or artificial intelligence.

Intrinsic Worth

This refers to the inherent value that an entity has, independent of its utility or benefit to others.