Which of the Following Statements Does Not Correctly Describe an Adjustment

question 90

Multiple Choice

Which of the following statements does not correctly describe an adjustment to net income when determining cash flows from operating activities when using the indirect method?

• A)A decrease in accounts receivable will be added to net income.
• B)An increase in inventory will be added to net income.
• C)An increase in accounts payable will be added to net income.
• D)Amortization of bond premium will be deducted from net income.

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Definitions:

Motor Neurons

Specialized neurons that originate in the brain or spinal cord and terminate in muscles or glands, controlling their activities.

Cell Membrane

A biological membrane that separates the interior of all cells from the outside environment, controlling the passage of substances in and out of the cell.

Myelin

A fatty substance that forms a sheath around the axons of many neurons, facilitating fast and efficient electrical conduction of nerve impulses.

Resting State

A condition or period in which something is not active or operating, often used in reference to the brain or body.