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

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Definitions:

ACTH

Adrenocorticotropic Hormone, a hormone produced by the pituitary gland that stimulates the adrenal glands to release cortisol.

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through when under stress.

Alarm Phase

The initial stage of the stress response, also known as the "fight or flight" response, during which the body prepares to deal with an immediate threat or stressor.

Rites of Passage

Ceremonies or rituals marking important stages in an individual's life, such as birth, puberty, marriage, and death.