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:

Public Offerings

The process by which a company sells its shares to the public for the first time through a stock exchange.

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Sole Proprietorship

A business structure where a single individual owns, manages, and is responsible for all aspects of the business, including its debts.

Closed Receivership

A legal process where a receiver is appointed to manage the affairs, assets, and liabilities of a distressed or insolvent company until a resolution is found.