Starting with Net Income and Adjusting It for Items That

question 117

Multiple Choice

Starting with net income and adjusting it for items that affected reported net income but which did not affect cash is called the

• A) direct method.
• B) indirect method.
• C) working capital method.
• D) cost-benefit method.

---

Definitions:

Social Pressure

The influence exerted by society or social groups on individuals to conform to certain behaviors or attitudes.

Collectivism

A cultural value that emphasizes the importance of the group over individual achievements.

Demonstrated Conformity

A behavior change designed to match the actions of others, typically influenced by the perceived need for acceptance.

Group Unanimity

A situation where members of a group completely agree on a decision or opinion, often influencing the behavior and thoughts of its individuals.