For a Firm Using the Indirect Method,which of the Following

question 20

Multiple Choice

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

• A)An increase in wages payable will be added to net income.
• B)A decrease in accrued interest payable will be deducted from net income.
• C)Amortization of bond discount will be added to net income.
• D)Patent amortization expense will be deducted from net income.

---

Definitions:

Colonial Trade

A historical term referring to the trade between colonial powers and their colonies, often involving the exchange of goods such as spices, textiles, and other commodities for profit.

Dutch Merchants

Businesspeople from the Netherlands who were involved in trade and commerce, particularly during the period of Dutch exploration and colonization.

Anglo-Dutch Wars

A series of 17th and 18th-century conflicts between England (later Britain) and the Dutch Republic over trade and naval supremacy.

Dutch Shipping

Relates to the Netherlands' historically significant maritime sector, known for its advanced shipbuilding technology and extensive trade networks.