Under the Indirect Method,which of the Following Would Be Subtracted

question 201

Essay

Under the indirect method,which of the following would be subtracted from net income when determining net cash flows from operations?
A)gain on the sale or a used truck
B)amortization expense
C)decrease in prepaid rent
D)increase in salaries payable

• A)gain on the sale or a used truck
• B)amortization expense
• C)decrease in prepaid rent
• D)increase in salaries payable

Understand how to calculate and interpret the effects of accounting adjustments on the adjusted trial balance and financial statements.

Understand the types of funds used in governmental accounting and their purposes.

Identify and differentiate between the basis of accounting (modified accrual vs. accrual) used in various governmental funds.

Recognize the appropriate recording of revenues and expenditures in governmental accounting.

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Definitions:

Compressed Work Weeks

Work schedules that allow employees to work their full number of hours over fewer days in the week, often to facilitate better work-life balance.

Free Day

A day without scheduled work or responsibilities, allowing for relaxation or personal activities.

Compressed Workweek

An alternative work arrangement where the standard workweek is condensed into fewer days, often allowing employees to enjoy longer weekends while maintaining full-time hours.

Four-Day

A work schedule that compresses the typical workweek into four days instead of the traditional five.