Which of the Following Items Is Added to Net Income

question 114

Multiple Choice

Which of the following items is added to net income to determine cash flows from operating activities when the indirect method is used to prepare the Operating Activities category of the statement of cash flows?

• A)Accumulated depreciation
• B)Cash from note payable related to truck acquired
• C)Cost of plant assets acquired during the year
• D)Depreciation expense

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Definitions:

Absorption

The process by which substances are taken up from the environment and enter the bloodstream or tissues of the body.

Digestive Tract

The series of organs and structures through which food passes, where it is broken down and nutrients are absorbed.

Trypsin

An enzyme produced in the pancreas that helps digest proteins by breaking them down into amino acids.

Acinar Cells

Glandular cells found in acinous glands, such as the salivary and pancreatic glands, that secrete substances into ducts.