Which of the Following Would Be Subtracted from Net Income

question 11

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) An decrease in dividends payable
• C) Depreciation expense
• D) A decrease in accounts receivable

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Definitions:

Post-Conventional

A stage in moral development where individuals recognize universal ethical principles and prioritize them over laws and rules.

Idealistic Approach

An approach that emphasizes high standards and principles, often with a focus on what is perfect or desirable over what is realistic.

Formal Operational

The stage of cognitive development in Piaget's theory, typically beginning around age 12, where individuals gain the ability for abstract thinking.

Alternatives

Different options or choices available in a given situation or problem-solving context.