Which of the Following Is an Incorrect Statement of One

question 39

Multiple Choice

Which of the following is an incorrect statement of one of the rules for converting net income to the cash flow from operating activities using the indirect method?

• A)Increases in current assets are subtracted from net income.
• B)Decreases in current assets are added to net income.
• C)Gains are added to net income.
• D)Increases in current liabilities are added to net income.

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Definitions:

Marginal Utility

The increased enjoyment or value gained by a consumer from consuming an extra unit of a good or service.

Price

The amount of money required to purchase a good or service, which is determined by supply and demand.

Turkey Sandwich

A type of sandwich made by placing slices of turkey between pieces of bread, often accompanied by various condiments and additions such as lettuce, tomato, and mayonnaise.

Utility

A term in economics that refers to the total satisfaction received from consuming a good or service.