Which of the Following Is a Deduction from Net Income

question 85

Multiple Choice

Which of the following is a deduction from net income when using the indirect approach to prepare the cash from operating activities of the Statement of Cash Flows?

• A) increase in accounts payable
• B) decrease in prepaid expenses
• C) loss on sale of investments
• D) depreciation expense

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Definitions:

Nearby Target Cells

Cells that are located close to the source of a signal molecule and are directly affected by it, often in the context of cellular communication.

Neuropeptide

One of a group of peptides produced in neural tissue that function as signaling molecules; many are neurotransmitters.

Prostaglandin

A collection of lipid molecules that exhibit varying hormone-like functions across animal species.

Hormones

Hormones are chemical messengers produced by glands in the body that regulate physiological processes by signaling to distant organs and tissues.