Which of the Following Would Not Be Added to Net

question 65

Multiple Choice

Which of the following would not be added to net income in the determination of net cash flow from operations?

• A)An increase in accounts payable.
• B)A decrease in accounts receivable.
• C)A decrease in prepaid expenses.
• D)An increase in inventory.

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Definitions:

Comprehensive Income

The total change in equity for a business that is not attributable to owners' investments or withdrawals.

Held-To-Maturity Securities

Debt securities that a company has the positive intent and ability to hold until they mature.

Noncurrent Assets

Long-term assets not expected to be liquidated or turned into cash within one year, such as property, plant, and equipment.

Unrealized Gains

Increases in value of assets that have not been sold yet, and therefore, the gains are not reflected in the financial statements as actual income.