Which of the Following Is an Adjustment That Would Need

question 77

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 amortization expense
• B) subtract gain on sale of subsidiary
• C) add an increase in accounts receivable
• D) add a decrease in accounts payable

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Definitions:

Historical Standard Deviation

It measures the variability or dispersion of historical returns of an investment around its average return over a certain period, indicating the investment's risk level.

Expected Return

The predicted average return on an investment calculated by adding together all possible returns weighted by the likelihood of each occurring.

Asset Allocation Strategy

A method of investment where an individual divides their investment portfolio among various asset categories, such as stocks, bonds, and cash, to optimize risk and return.

Go Global

A strategy or approach aimed at expanding business operations internationally to access larger markets and opportunities.