Which of the Following Is an Addition to Net Income

question 55

Multiple Choice

Which of the following is an addition to net income when the indirect method is used?

• A)An increase in inventory
• B)A loss on sale of equipment
• C)A decrease in accounts payable
• D)An increase in accounts receivable

---

Definitions:

Implicit Social Rules

Unwritten rules that govern behavior and interactions within a society.

Bluffing

The act of misleading others into believing something that is not true, especially to gain an advantage in negotiations or competitions.

Misrepresenting

The act of presenting information in a way that is false or misleading.

Truth Telling

The act of providing honest and accurate information or disclosure.