Which of the Following Would Be Added to Net Income

question 198

Multiple Choice

Which of the following would be added to net income using the indirect method?

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

---

Definitions:

Outward Manifestation

Outward manifestation refers to the external display or expression of a condition, intention, or agreement, observable by others.

Reasonable Amount

an amount or quantity that is considered fair, appropriate, or moderate under the circumstances.

Counteroffer

A response to an offer in a negotiation, where the original offer is rejected and a new offer is presented.

Original Offer

The initial proposal or bid made in a negotiation or business agreement.