Using the Indirect Method, Which of the Following Would Not

question 83

Multiple Choice

Using the indirect method, which of the following would not be an adjustment to net income?

• A)depreciation expense
• B)an increase in prepaid insurance
• C)an increase in inventories
• D)an increase in Land

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Definitions:

Substituted Service

A legal method of serving court documents when direct service to the defendant or respondent is not possible, typically involving leaving documents with another person or at a specified location.

E-service

Refers to electronic service, which is the provision of services via the internet or an electronic network.

Certified Mail

A mailing service that provides the sender with a receipt and confirmation that the mail was delivered to the recipient.

E-mail

Electronic mail, a method of exchanging messages between people using electronic devices.