Using the Indirect Method, Which of the Following Would Be

question 4

Multiple Choice

Using the indirect method, which of the following would be added to net income?

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

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Definitions:

BCG Matrix

A strategic planning tool that uses graphical representations of a company’s products and services to help management decide where to invest, develop, or discontinue.

Cash Cow

A cash cow is a business term for a product or business segment that generates consistently high profit margins and significant cash flow, with minimal investment.

Break-Even Analysis

An evaluation to determine the point at which revenue received equals the costs associated with receiving the revenue, indicating no net loss or gain.

Sales And Expense

Refers to the process of selling goods or services and the costs incurred during this process.