Which of the Following Items Would Be Subtracted from Net

question 114

Multiple Choice

Which of the following items would be subtracted from Net Income to compute Net Cash Flow from Operating Activities under the indirect method?

• A) A decrease in Prepaid Insurance
• B) A decrease in Merchandise Inventory
• C) An increase in Salaries Payable
• D) A decrease in Accounts Payable

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Definitions:

Budget

An estimate of income and expenditure for a set period, often used by governments, businesses, and individuals to plan financial operations.

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A staple fruit globally known for its yellow peel and soft, sweet flesh, often grown in tropical regions.

Productive Resources

The inputs used in the production of goods and services, typically classified as land, labor, capital, and entrepreneurship.

Economists

Professionals who study, develop, and apply theories and concepts from economics and write about economic policy.