Using the Indirect Method, Which of the Following Would Be

question 105

Multiple Choice

Using the indirect method, which of the following would be added to profit?

• A)Increase in accounts receivable
• B)Increase in prepaid expenses
• C)Depreciation expense
• D)Decrease in accounts payable

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Definitions:

Market Segments

Divisions within a market defined by specific criteria, where consumers have similar needs, preferences, or characteristics.

Product Service

A combination of physical products and services provided as a bundle to meet a consumer's need or desire.

Limited Partnership

A form of partnership consisting of at least one general partner who manages the business and assumes legal debts and obligations, and one or more limited partners who are liable only to the extent of their investments.

General Partner

An owner of a partnership who is actively involved in its management and has unlimited personal liability for the business debts.