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:

Sample Points

Individual elements or observations selected from a population for the purpose of statistical analysis.

Outcome

The result of a single trial of a random experiment.

Experiment

A methodical procedure carried out with the aim of verifying, falsifying, or establishing the validity of a hypothesis by manipulating variables to observe their effects.

Sample Point

An element of the sample space. A sample point represents an experimental outcome.