Starting with Net Income and Adjusting It for Items That

question 117

Multiple Choice

Starting with net income and adjusting it for items that affected reported net income but which did not affect cash is called the

• A) direct method.
• B) indirect method.
• C) working capital method.
• D) cost-benefit method.

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Definitions:

Plant Cells

Cells that make up plant tissues, distinguished by their rigid cell walls, chloroplasts for photosynthesis, and large central vacuole.

Lignin

An organic substance binding the cells, fibers, and vessels of wood and plants, contributing to the stiffness and strength of the cell wall.

Polymer

Large molecules composed of many repeated subunits, known for their broad range of properties and uses in natural and synthetic materials.

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks of life with crucial roles in cell function and metabolism.