Which of the Following Should Be Added to Net Income

question 27

Multiple Choice

Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

• A) an increase in inventory
• B) a decrease in accounts payable
• C) preferred dividends declared and paid
• D) a decrease in accounts receivable

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Definitions:

Anterograde Amnesia

A condition impairing the ability to form new memories following the onset of an amnesia-causing event, leaving intact the capability to remember the past before the event.

Hyperspecific

Refers to being extremely or excessively precise or detailed, often beyond what is necessary or useful.

Episodic Memory

A type of long-term memory that involves the recollection of specific events, situations, and experiences.

Mnemonic Device

A trick or technique used to improve memory by making information easier to remember.