An Example of an Item That Is Deducted from Net

question 48

Multiple Choice

An example of an item that is deducted from net income when preparing the operating activities section of the statement of cash using the indirect method is:

• A) depreciation expense.
• B) compensation expense related to stock option plans.
• C) income from an investment accounted for using the equity method.
• D) unrealized losses on trading investments

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Definitions:

Recognizing One's Emotions

The ability of an individual to identify and understand their own emotional states.

Capabilities

The skills, knowledge, and resources an organization or individual possesses that enable them to achieve objectives and perform effectively.

Intense Dislike

A strong feeling of aversion or antipathy towards someone or something.

Attitude

An established attitude or emotional stance towards a person or thing, often shown through how one acts.