Which of the Following Would Be Added to Net Income

question 34

Multiple Choice

Which of the following would be added to net income in computing cash flows from operating activities?

• A)an increase in accounts receivable
• B)an increase in inventories
• C)a decrease in deferred taxes payable
• D)a decrease in prepaid expenses

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Definitions:

Seize Property

The act of taking possession of property, often by legal authority, due to legal judgment or law enforcement action.

Attach Funds

A legal process where a creditor seeks court permission to seize the funds of a debtor from a bank account or similar resource to satisfy a debt.

Creditor

A person or entity to whom money is owed by another (the debtor), typically arising from a transaction of credit or loan.

Judgment

A formal decision or finding made by a court following a legal proceeding.