Under the Indirect Method, Which of the Following Is NOT

question 69

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 supplies
• B)Subtracting an increase in interest payable
• C)Subtracting an increase in prepaid insurance
• D)Adding a loss on the sale of machinery

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Definitions:

Communication Style

The manner in which individuals express themselves and interpret messages from others, influenced by cultural, personal, and situational factors.

Communication Style Bias

The tendency to favor or be prejudiced against certain communication styles over others, often leading to misunderstandings or conflict.

Emotive Communication

The expression and conveyance of emotions through verbal or non-verbal means.

Excess Zone

A situation where desired or necessary levels of something, such as production or capacity, are exceeded, leading to inefficiency or waste.