Under the Indirect Method, Which of the Following Is NOT

question 47

Multiple Choice

Under the indirect method, which of the following is NOT a proper adjustment to net income under operating activities?

• A) Adding a decrease in inventory
• B) Subtracting an increase in salaries payable
• C) Deducting an increase in prepaid expenses
• D) Subtracting a gain on the sale of equipment
• E) Adding a decrease in accounts receivable

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Definitions:

Financial Institutions

Organizations that conduct financial transactions such as investments, loans, and deposits.

Blacklisted

Being placed on a list that denotes disapproval or prohibition, often preventing transactions or access due to violations or distrust.

Whitelisted

Added to a list that grants permission or access, typically used in security to designate approved entities.

Security Procedures

Actions and policies implemented to safeguard data, networks, and systems from unauthorized access or attacks.