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

question 116

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)Add an increase in Accounts Payable
• B)Add Depreciation Expense
• C)Add a decrease in Accounts Payable
• D)Subtract the gain on sale of land

---

Definitions:

Maslow

A renowned American psychologist who is famous for developing the Hierarchy of Needs theory, which suggests that psychological well-being is based on meeting inherent human necessities.

Problems

Situations, tasks, or issues that require a solution or response, often presenting challenges or obstacles to overcome.

Human Nature

The fundamental dispositions and characteristics, including ways of thinking, feeling, and acting, that are commonly shared among humans.

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health.