Which of the Following Is an Incorrect Statement of One

question 26

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)Noncash revenue and gains are added to net income.
• D)Increases in current liabilities are added to net income.

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Definitions:

Cod Fisheries

The industry or practice of catching codfish, historically significant for economic development in various regions.

Innis

Harold Innis was a Canadian economist and communication theorist known for his work on media, communication theories, and economic history.

Karl Marx

A nineteenth-century philosopher, economist, and revolutionary who co-developed Marxism, a theoretical framework for analyzing and critiquing capitalism and advocating for socialism.

Power

The ability or capacity to influence or control the behavior of people, the course of events, or the distribution of resources.