When Reconciling Net Income to Net Cash Provided by Operating

question 173

Multiple Choice

When reconciling net income to net cash provided by operating activities, a(n) is a deduction from net income.

• A) decrease in accounts payable
• B) increase in unearned revenues
• C) decrease in prepaid rent
• D) decrease in inventories

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Definitions:

Simulation Analysis

A method used in financial planning that assesses the impact of different variables on a model's outcome to predict possible outcomes under different scenarios.

Range of Values

A set of values that includes the minimum and maximum values within a given dataset.

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid out in cash.

IRR

The Internal Rate of Return is a financial measurement tool used to assess the profitability of prospective investments.