Which of the Following Would Be Added to Net Income

question 5

Multiple Choice

Which of the following would be added to net income using the indirect method?

• A) loss on sale of equipment
• B) gain on sale of a long-term investment
• C) an increase in accounts receivable
• D) proceeds from the sale of a patent

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Definitions:

Strategic Competitive Advantage

A condition that differentiates a business from its competitors, allowing it to generate greater sales or margins and/or retain more customers.

Speed

Refers to the rate at which an activity or process is carried out or completed.

Competitive Advantage

Competitive advantage occurs when an organization acquires or develops an attribute or combination of attributes that allows it to outperform its competitors.

Production-Based

A focus on the quantity of work or goods produced, often prioritizing output over quality or other factors.