Which of the Following Would Be Deducted from Net Income

question 36

Multiple Choice

Which of the following would be deducted from net income on a statement of cash flows prepared using the indirect method?

• A) A gain from the sale of equipment
• B) A decrease in accounts receivable
• C) An increase in accounts payable
• D) Dividends paid

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Definitions:

Subalternate

A term from traditional logic that refers to a relationship between categorical propositions where the truth of one proposition implies the truth of another.

Categorical Propositions

Statements that relate two categories or classes in a way that affirms or denies membership of one in relation to the other.

Contrary

Logically opposite, exhibiting contrast in a particular quality without being completely different.

Subcontrary

In logic, propositions that cannot both be false, but can both be true, especially within the square of opposition.