Which of the Following Would Not Be an Adjustment to Net

question 15

Multiple Choice

Which of the following would not be an adjustment to net income using the indirect method?

• A) Depreciation Expense
• B) An increase in Prepaid Insurance
• C) Amortization Expense
• D) An increase in Land

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Profits

The financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining that activity.

Outliers

Data points that significantly deviate from the rest within a random population sample, appearing at an unusually large distance from other values.

Skewed

A description of a distribution of data that is not symmetric and has one tail that is longer or fatter than the other, indicating a deviation from the normal distribution.

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