Which of the Following Would Be Subtracted from Net Income

question 190

Multiple Choice

Which of the following would be subtracted from net income using the indirect method?

• A) Depreciation expense
• B) An increase in accounts receivable
• C) An increase in accounts payable
• D) A decrease in prepaid expenses

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Definitions:

Poverty

A state or condition in which an individual or community lacks the financial resources and essentials for a minimum standard of living.

Great Society

A collection of initiatives in the U.S. introduced by President Lyndon B. Johnson with the goal of eradicating poverty and racial inequality.

City Riots

A form of public disturbance involving an act of violence by a crowd of people in an urban area.

Federal Deficit

The shortfall when a government's expenditures exceed its revenues within a given fiscal year.