In Converting Net Income to Net Cash Provided by Operating

question 78

Multiple Choice

In converting net income to net cash provided by operating activities using the indirect method:

• A)decreases in accounts receivable and increases in prepaid expenses are added.
• B)decreases in inventory and increases in accrued liabilities are added.
• C)decreases in accounts payable and decreases in inventory are deducted.
• D)increases in accounts receivable and increases in accrued liabilities are deducted.

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Definitions:

Magnetic Field

A vector field surrounding magnets and electric currents, exerting force on other magnets and current-carrying conductors.

Alternator Output

The electrical power produced by an alternator, typically used in vehicles to charge the battery and power the electrical system when the engine is running.

Revolving Armature

An armature that rotates within a magnetic field in a generator or motor, converting electrical energy to mechanical energy, or vice versa.

Power Output

The total amount of power, usually measured in watts, that a device can produce or supply.