Which of the Following Is an Adjustment That Would Need

question 17

Multiple Choice

Which of the following is an adjustment that would need to be made to net income when calculating cash flows from operations under the indirect method?

• A) Subtract depreciation expense
• B) add depreciation expense
• C) add an increase in accounts receivable
• D) add a decrease in accounts payable

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Definitions:

Elastic

A characteristic of goods or services with demand that is significantly responsive to changes in price.

Value Of Land

The worth of a piece of land determined by its characteristics, location, and potential uses.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.

Elastic

A characteristic of demand or supply indicating a high responsiveness to changes in price.