Starting with Net Income and Adjusting It for Items That

question 117

Multiple Choice

Starting with net income and adjusting it for items that affected reported net income but which did not affect cash is called the

• A) direct method.
• B) indirect method.
• C) working capital method.
• D) cost-benefit method.

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Definitions:

Savings

The portion of income not spent on consumption but reserved for future use; in psychology, it also refers to the reduction in time or effort to relearn a previously learned task.

Sequentially

In a sequential order or manner, where events, processes, or items follow one after another in a logical sequence.

Suspects

Individuals believed to possibly be involved in committing a crime or wrongdoing, but not yet proven guilty.

Free Recall

The process of retrieving information without the use of cues or prompts, in any order.