Which of the Following Is Not an Adjustment Applied to Net

question 106

Multiple Choice

Which of the following is not an adjustment applied to net income to arrive at net cash provided or used by operating activities under the indirect method?

• A)add back losses.
• B)add back noncash expenses.
• C)add increases in current assets.
• D)deduct decreases in current liabilities.

---

Definitions:

Reversal Technique

A psychological or therapeutic technique that involves flipping one's perspective on a situation or problem to gain new insights or solutions.

Roadblocks To Creativity

Challenges, obstacles, or conditions that hinder or impede the creative process or the generation of innovative ideas.

Bounded Rationality

A concept that individuals make decisions based on the limited information available to them and within the constraints of their mental capacity.

Lateral Thinking Techniques

Problem-solving methods used to encourage creative thinking and come up with innovative solutions.