Which of the Following Adjustments to Net Income Is NOT

question 5

Multiple Choice

Which of the following adjustments to net income is NOT correct if you want to calculate cash flow from financing activities?

• A)Add dividends paid
• B)Add any increase in long-term borrowing
• C)Add proceeds from sale of stock
• D)Add any increase in short-term borrowing

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Definitions:

Commitment

The act of dedicating oneself to a cause or activity or the state of being in a long-term engagement.

Mere Exposure Effect

is a psychological phenomenon wherein individuals develop a preference for things or people they are frequently exposed to, even if there is no conscious recognition of familiarity.

Skeptical Customers

Consumers who approach products or services with doubt and require convincing evidence before making a purchase.

Emotional Appeals

A persuasive technique that attempts to arouse emotional responses in the audience, often used in advertising and speeches to influence attitudes and behaviors.