Which Would Be Subtracted from Net Income in the Operating

question 98

Multiple Choice

Which would be subtracted from net income in the operating section of an indirect cash flow statement?

• A)A decrease in prepaid insurance
• B)A decrease in bonds payable
• C)An increase in interest payable
• D)An increase in inventory

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Definitions:

Vendors List

A list in accounting or business software that contains details about suppliers and vendors from whom a company purchases goods or services.

Suppliers

Businesses or individuals that provide goods or services to companies, typically as part of the supply chain.

Addresses

A collection of information detailing the location of an individual or organization, typically including elements such as street name, number, city, and postal code.

Enter Bills

The process of recording invoices received from suppliers into the accounting system.