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:

Presumptions

In legal contexts, assumptions made by the law that hold until disproven.

Husband and Wife

Legal or social partners bound by marriage, with specific rights and obligations towards each other as defined by law or custom.

Capacity

An element of a valid contract; the freedom to enter into a contract, which is sometimes limited by law as is the case, for example, with minors, the insane, the intoxicated, aliens, bankrupts, and Indians.

Married Women

Women who are legally wed under the laws or customs recognized by their jurisdiction, affecting various legal rights and obligations.