Cash Flow from Operations Includes All of the Following Adjustments

question 14

Multiple Choice

Cash flow from operations includes all of the following adjustments to net income EXCEPT

• A) purchases of new equipment.
• B) depreciation.
• C) increase or decrease in current liabilities.
• D) increase or decrease in current inventory.

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Definitions:

Distributive Tactics

Strategies used in negotiations where parties view the available outcomes as fixed, leading to a win-lose situation where one's gain is the other's loss.

Dirty Tricks

Unethical, deceptive, or unfair strategies employed to gain an advantage in a competition or negotiation.

Responding

The act of replying or reacting to something that has been said or done.

Social Contract Ethics

A theory in philosophy that posits moral and political rules are based on a contract or agreement among people to form the society in which they live.