All of the Following Are Additions to Net Income When

question 65

Multiple Choice

All of the following are additions to net income when preparing the statement of cash flows under the indirect method except:

• A) losses on sales of long term assets.
• B) a decrease in accounts payableAccounts Payable.
• C) a decrease in prepaymentsPrepaid Insurance.
• D) a decrease in accounts receivableAccounts Receivable.

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Definitions:

Foreign Policy

A government's strategy in dealing with other nations, involving diplomacy, military actions, and trade agreements.

Formative Years

A period of a person's life or an institution's existence that is crucial for development and shaping its future.

Militarily Weak

A descriptive term for a nation or entity that possesses limited military strength and capabilities compared to potential adversaries.

IRA

Individual Retirement Account; a financial tool in the United States for retirement savings with various tax advantages.