Which of the Following Items Is Subtracted from Net Income

question 154

Multiple Choice

Which of the following items is subtracted from net income when using the indirect method of calculating cash flows provided by operating activities?

• A)A gain on the sale of equipment
• B)Repayment of notes payable
• C)Receipt of cash dividends
• D)Declaration of cash dividends

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Definitions:

Intermediate Position

A stance or level that falls between two extremes or primary positions, often used to describe job levels or decision-making stages.

Irrevocable

Unable to be changed, revoked, or undone; permanent.

Preincorporation Subscriptions

Agreements by investors to purchase stock in a corporation that is yet to be formed.

Promoter

An individual or company that helps to raise capital, organize, and establish a corporation or project, often taking on both financial and legal responsibilities in the early stages.