Under the Indirect Method of Cash Flow, Which of the Following

question 9

Multiple Choice

Under the indirect method of cash flow, which of the following adjustments would NOT be made to net income when computing cash from operating activities?

• A) Adding an increase in accounts payable
• B) Adding depreciation expense
• C) Adding a decrease in accounts payable
• D) Subtracting the gain on sale of land
• E) Proceeds from the sale of a long-lived asset

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Definitions:

Government Theory

This refers to the study and analysis of political systems, governance structures, and theoretical foundations that guide the operation, organization, and relationship between government and the governed.

Monroe Doctrine

A cornerstone of American foreign policy introduced in 1823, which declared that further efforts by European nations to colonize land or interfere with states in the Americas would be viewed as acts of aggression, requiring U.S. intervention.

European Nations

Countries located on the continent of Europe, known for their diverse cultures, languages, and histories.

Latin America

A region in the Americas characterized by countries that primarily speak Spanish, Portuguese, and French, known for its diverse cultures, history, and significant socioeconomic challenges.