An Example of an Item That Is Deducted from Net

question 48

Multiple Choice

An example of an item that is deducted from net income when preparing the operating activities section of the statement of cash using the indirect method is:

• A) depreciation expense.
• B) compensation expense related to stock option plans.
• C) income from an investment accounted for using the equity method.
• D) unrealized losses on trading investments

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Definitions:

Physically Proximal

denotes being in close physical or spatial relationship to something or someone.

Nondeclarative Memory

A type of long-term memory that enables people to perform tasks without conscious awareness of previous experiences, including skills and habits.

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, or numbers, essential for the use and understanding of language.

Eidetic Memory

A rare ability to recall images, sounds, or objects with high precision for a few minutes without using mnemonic devices.