Which of the Following Adjustments to Net Income Is NOT

question 4

Multiple Choice

Which of the following adjustments to net income is NOT correct if you are trying to calculate cash flow from operating activities?

• A)Add increases in accounts payable
• B)Add back depreciation
• C)Add increases in accounts receivable
• D)Deduct increases in inventory

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Definitions:

Cardiac Muscle

A type of involuntary, striated muscle found exclusively in the heart, essential for pumping blood throughout the body.

Flexion

Bending.

Extension

The movement increasing the angle between body parts, opposite to flexion.

Skeletal Muscle

A type of muscle tissue that's controlled voluntarily, supports skeletal movements, and is distinguished by its striated appearance.