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:

Early Adolescents

A developmental stage referring to individuals typically aged between 10 and 14 years, characterized by rapid physical, emotional, and social changes.

Family SES

Socioeconomic status of a family unit, determined by factors such as income, education level, and occupation, which affects members' social standing and access to resources.

Parental Attachment

The emotional bond that develops between a child and their caregivers, influencing the child's emotional and social development.

Low Neuroticism

A personality trait marked by calmness and stability, indicating a person's tendency to experience fewer negative emotions such as anxiety or depression.