In Converting Net Income to Net Cash Provided by Operating

question 55

Multiple Choice

In converting net income to net cash provided by operating activities under the indirect method:

• A) decreases in accounts receivable and increases in prepaid expenses are added.
• B) decreases in inventory and increases in accrued liabilities are added.
• C) decreases in accounts payable and decreases in inventory are deducted.
• D) increases in accounts receivable and increases in accrued liabilities are deducted.

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Definitions:

Blood PH

The measure of the acidity or alkalinity of blood, maintained within a tightly controlled range of about 7.35 to 7.45 to ensure proper cellular function.

Cough Reflex

A rapid expulsion of air from the lungs typically triggered by irritation or obstruction in the air passages, serving as a protective mechanism to clear the trachea and bronchi.

Mucus

A slimy substance produced by mucous membranes and glands for lubrication and protection of various internal body surfaces.

Upper Respiratory Tract

Nasal cavity, pharynx, and associated structures.