Which of the Following Adjustments to Convert Net Income to Net

question 107

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:

Norms

Standards or expectations that are accepted by a group of people dictating what is considered normal behavior within that group.

Organizational Culture

The shared values, beliefs, and norms that influence the way employees think, feel, and behave within an organization.

Learned Values

Values acquired through socialization and experience that influence individual behavior and preferences.

External Adaptation

The process by which an organization or individual adjusts to changes in the external environment to ensure survival and success.