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

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Definitions:

Computer Workstations

Advanced computing systems built for the purpose of executing scientific or technical applications with high efficiency.

Direct Method

A cash flow statement preparation approach that involves directly listing all major operating cash receipts and payments during the period.

Maintenance Costs

refer to expenses incurred to keep machinery, equipment, and facilities in working order, ensuring operational efficiency.

Labor Hours

A measure of the amount of work performed, calculated by multiplying the number of workers by the number of hours each works.