Under the Indirect Method,which of the Following Is NOT a Proper

question 89

Multiple Choice

Under the indirect method,which of the following is NOT a proper adjustment to net income under operating activities?

• A)Adding a decrease in inventory
• B)Subtracting an increase in salaries payable
• C)Deducting an increase in prepaid expenses
• D)Subtracting a gain on the sale of equipment

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Definitions:

Finke's Principles

Pertains to theories and concepts developed by cognitive psychologist Ronald A. Finke, emphasizing the imaginative creation and manipulation of visual images.

Visual Images

Mental representations of physical objects or scenes that are not currently being observed, often utilized in cognitive processes such as memory and imagination.

Visual Perception

The ability to interpret and make sense of visual stimuli from the environment through the process of sight.

Spatial Arrangement

The organization and placement of objects in space, often requiring an understanding of structure and the relationships between items.