Which of the Following Would Be Subtracted from Net Income

question 190

Multiple Choice

Which of the following would be subtracted from net income using the indirect method?

• A) Depreciation expense
• B) An increase in accounts receivable
• C) An increase in accounts payable
• D) A decrease in prepaid expenses

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Definitions:

Deming

Pertains to W. Edwards Deming, a distinguished American engineer, statistician, professor, author, lecturer, and consultant in management, renowned for his contributions to the field of quality management.

Quality Improvement

The ongoing effort to enhance products, services, or processes through incremental improvements or breakthrough achievements, aiming for enhanced customer satisfaction and operational efficiency.

Entire Economy

Refers to the comprehensive system encompassing all economic activities and interactions within a country, including production, consumption, and trade of goods and services.

Deming

Deming is best known for his work in quality management and continuous improvement, with his principles significantly influencing manufacturing and service industries worldwide.