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:

Supply Uncertainty

The risk of interruptions or variability in the availability of goods or materials required for production.

Ship Product

The act of sending ordered goods to the purchaser or designated destination, completing the order fulfillment process.

Substitute Similar Products

Refers to the practice of using or offering products that are comparable in functionality and quality to the original specified product, to cope with shortages or to provide cost benefits.

Supply Chain Responsiveness

The ability of a supply chain to adapt quickly and efficiently to changes in the market environment, customer preferences, or supply disruptions.