Which of the Following Statements Does Not Correctly Describe an Adjustment

question 74

Multiple Choice

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

• A)An increase in wages payable will be added to net income.
• B)A gain on the sale of a depreciable asset will be deducted from net income.
• C)An increase in prepaid expenses will be deducted from net income.
• D)An increase in income taxes payable will be deducted from net income.

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Definitions:

Ethnomethodology

A sociological perspective focusing on the ways people make sense of their everyday life and the methods they use to do so.

Symbolic Interactionism

A sociological perspective focusing on the roles that symbols, language, and communication play in the formation of self-concept and social order.

Mass Media

Forms of communication designed to reach large audiences through various mediums like television, radio, newspapers, and the internet.

Social Control

Mechanisms, strategies, and institutions used by society to regulate individual behavior and maintain social order.