All of the Following Adjustments Would Be Deducted in Determining

question 125

Multiple Choice

All of the following adjustments would be deducted in determining net cash provided by operating activities except a(n)

• A)increase in inventories.
• B)depreciation expense.
• C)gain on disposal of plant assets.
• D)decrease in accrued expenses payable.

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Definitions:

Complements

Complements are goods or services that are used together, so that the consumption or use of one increases the demand for the other.

Durable Good

A type of good that does not quickly wear out and is capable of being used for a period of time, often years, before needing replacement.

Automobile

A wheeled motor vehicle used for transportation, typically powered by an internal combustion engine or electric motor.

Substitute Good

A product or service that consumers see as a viable alternative to another product, where an increase in the price of one leads to an increase in demand for the other.