Which of the Following Would Be Deducted from Net Income

question 20

Multiple Choice

Which of the following would be deducted from net income when determining cash flows from operating activities under the indirect method?

• A)A decrease in utilities payable.
• B)Patent amortization expense.
• C)A decrease in prepaid rent.
• D)A loss on the sale of a depreciable asset.

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Definitions:

Hypothesis

An initial hypothesis formed from restricted data intended to initiate more detailed exploration.

Study Conduct

The manner in which research or academic studies are performed, emphasizing ethical, reliability, and validity standards.

Scientific Method

A systematic process of inquiry involving observation, experimentation, and analysis to answer questions about the natural world.

Observer Bias

A form of research bias that occurs when a study's observers allow their expectations or beliefs to influence the recording of data or interpretation of outcomes.