Which of the Following Would Be Subtracted from Net Income

question 1

Multiple Choice

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

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

---

Definitions:

Maximum Revenues

The highest amount of income that a company can generate from its sales before any deductions.

Seller

An individual or entity that offers goods or services in exchange for monetary compensation or other benefits.